HPE receives $1.2bn Vultr AI infrastructure order

HPE stock rose 5% after securing a $1.2B Vultr order for AMD Helios AI Rack systems. The deal includes networking, liquid cooling, and deployment services. HPE raised its fiscal 2027 networking revenue growth outlook to high-teens to low-20s and increased Juniper acquisition synergy targets to $800M by fiscal 2028. The stock hit a 52-week high of $67.10.

Hewlett Packard Enterprise (HPE) secured a $1.2B deal with Vultr for AMD-powered AI racks, marking its first AMD Helios order. HPE raised its networking revenue growth forecast to high-teens to low-20s% through 2029, up from 5%-7%. HPE shares rose 5.52% on the news, with short interest declining before the announcement.

Hewlett Packard Enterprise (HPE) stock rose 3.7% after announcing a $1.2B AI system order from Vultr and raising its networking revenue growth forecast for 2027 to high teens to low 20%. The company also increased its cost-synergy target from the Juniper Networks acquisition to $800M by 2028. HPE's shares have gained 169% YTD, reaching a 52-week high of $64.99.

HPE stock rose 4.6% to $64.30 in premarket trading after the company forecast strong revenue growth for its networking segment, driven by AI demand. HPE expects fiscal 2027 revenue growth of 15-25% and operating margins of 25-29%. The company also announced a $1.2 billion order from Vultr for AMD Helios AI Rack systems.

Hewlett Packard Enterprise (HPE) stock rose 5% to $64.55 after securing a $1.2B order for AMD Helios AI Rack systems from Vultr. HPE also raised its networking revenue outlook. Dell and Super Micro saw minimal movement. The semiconductor sector was flat.

Nasdaq Composite rose 0.52% on Wednesday, led by chip stocks like Intel (+3.28%) and Nvidia (+1.64%) due to strong AI demand. HPE surged 6.20% on a $1.2B AI order. Moderna fell 7.76% after a Citi downgrade, and Fair Isaac dropped 3.49% on mortgage pricing changes. August core PCE inflation data was below estimates, reducing October rate hike odds.