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.
When you put a supercomputer in the hands of scientists and engineers who keep asking what if, why not and what's next, problems get solved and our world changes. And that's exactly what @ORNL plans to do: https://t.co/xh1Bxn3Jew— Cray Inc. (@cray_inc) May 16, 2019
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.