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Wall Street's eyes were on Hewlett Packard Enterprise (HPE) on Wednesday, and for good reason. Ahead of its Networking Investor Day, the company announced a $1.2 billion artificial intelligence (AI) system order and raised its multi-year networking outlook, giving investors plenty to cheer about. The headline win came from Vultr, the world's largest privately held cloud infrastructure company, which placed a $1.2 billion order for AMD (AMD) Helios AI Rack systems. It's the first purchase of this new architecture, which pairs AMD Instinct processors with purpose-built HPE Networking scale-up switching and software.
HPE didn't stop there. In a concurrent regulatory filing, the company raised its fiscal 2027 Networking segment revenue growth forecast to between the high teens and low-20s percent. It also boosted its annual cost-synergy target from the Juniper Networks acquisition to $800 million by the end of fiscal 2028, up from at least $600 million, and projected Data Center Networking revenue to grow at a low-to-high 50s percent compound annual rate through fiscal 2029.
