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HPE Boosts Networking Growth Outlook, Gets $1.2 Billion AI Order From Cloud Firm Vultr
The company now expects networking revenue to grow in the high teens through fiscal 2029 and raised its fiscal 2027 outlook after the Vultr deal.
On Wednesday, Hewlett Packard Enterprise secured a $1.2 billion order from Vultr for Advanced Micro Devices Helios AI Rack systems while raising its long-term networking revenue growth forecast.
This deal leverages HPE's networking unit, which expanded following the Juniper Networks acquisition last year; each AMD Helios rack integrates 72 AMD Instinct MI455X GPUs designed for large-model training.
HPE increased its fiscal 2027 networking revenue growth forecast to the high teens to low 20s percentage range, while raising expected annual run-rate cost savings from the Juniper deal to $800 million by fiscal 2028.
Shares of HPE jumped 5% on Wednesday following the announcement, though Dell Technologies and Super Micro Computer saw muted reactions, suggesting investors viewed the news as company-specific.
"AI is reshaping the technology stack, making the network more strategic and driving significant new demand," HPE's networking unit head Rami Rahim said, emphasizing infrastructure growth as a long-term driver.