HPE stock gained 5% on Wednesday after Hewlett Packard Enterprise announced a $1.2 billion order from Vultr for AMD Helios AI Rack systems across Vultr’s US data centers.
The order marks HPE’s first for the new AMD Helios system and gives the company a major customer for AMD’s latest rack-scale AI platform.
HPE will supply networking infrastructure, liquid cooling and deployment services for the systems.
HPE shares also reached a 52-week high of $67.10 during Wednesday’s trading. The stock has gained more than 160% this year.
HPE lands first AMD Helios order from Vultr
Each AMD Helios rack combines 72 AMD Instinct MI455X GPUs with AMD EPYC “Venice” CPUs, Pensando Vulcano AI networking cards and ROCm software.
HPE said the configuration was designed by AMD for training trillion-parameter models and high-volume inference.
HPE will provide the networking infrastructure, including six HPE Juniper Networking QFX5252 scale-up Ethernet switch trays per rack to connect all 72 GPUs.
The company will also provide liquid cooling and deployment services through its global services arm.
The order builds on a relationship between Vultr and Juniper Networks that dates back nearly three years and predates HPE’s acquisition of Juniper, which was completed in 2025.
Vultr CEO J.J. Kardwell said demand for high-performance AI infrastructure “continues to outpace available capacity.”
He added that the new systems would help Vultr bring rack-scale computing and networking online faster for customers running large training and inference workloads.
HPE President and CEO Antonio Neri said, “AI is driving the largest infrastructure buildout in history and together with AMD and Vultr, we are building an open foundation to accelerate the next phase of AI.”
HPE raises networking growth expectations
Separately, HPE updated its outlook for fiscal 2027 and beyond, with the company expecting networking revenue to grow in the high-teens to low-20s percentage range in fiscal 2027.
HPE said it is gaining share in the data-center networking market.
Data-center networking revenue is expected to grow at a low-to-high 50s percentage compound annual rate through fiscal 2029.
The company also expects routing revenue to grow in the low-to-high 20s percentage range through 2029.
Rami Rahim, executive vice president, president and general manager of Networking at HPE, said AI is increasing the strategic importance of networking and driving additional demand from enterprises and service providers.
“AI is reshaping the technology stack, making the network more strategic and driving significant new demand from enterprises and service providers,” Rahim said.
He added that HPE expects to address that demand through its networking portfolio, sales reach and cross-selling capabilities.
Juniper acquisition synergies increase
HPE also increased its target for annual run-rate savings from its Juniper Networks acquisition.
The company now expects to achieve $800 million in annual run-rate savings by the end of fiscal 2028, up from its previous target of at least $600 million.
The expanded synergy target comes as HPE outlines its longer-term networking expectations and highlights the role of AI infrastructure in driving demand for networking products.
The post Why is HPE stock gaining today? appeared first on Invezz
