Shares of supercomputer manufacturer Cray (CRAY) - Get Report surged on Friday before being halted after reports that Hewlett Packard Enterprise (HPE) - Get Report was in advanced talks to acquire the company.
Cray stock jumped more than 16%, or $4.96, to $34.77 in premarket trading on the Nasdaq Stock market after Bloomberg reported that HPE may announce a deal to purchase the Seattle-based company as soon as Friday. The stock closed Thursday up 0.68% at $29.81.
The stock was halted as of 6:20 a.m. ET pending an announcement.
Shares in Cray have risen about 38% this year and closed at $29.81 on Thursday, giving the Seattle-based company a $1.23 billion valuation.
Formed in 2015 from the breakup of Hewlett-Packard Co, HPE is slated to reveal its second-quarter earnings next Thursday. The company is expected to post earnings of 51 cents a share, according to the average of analysts surveyed by FactSet.
HPE shares were little changed in premarket trading on Friday after ending the day Thursday up 0.69% at $14.53.
Advanced Micro Devices (AMD) - Get Report and Cray earlier this month announced they won a $600 million-plus deal to supply the U.S. Department of Energy's Oak Ridge National Laboratory with a supercomputer featuring over 1.5 exaflops (over 1.5 million teraflops) of processing power.