HPE lands $1.2B Vultr order for AMD Helios AI racks, raises networking growth outlook; HPE +6%
What happened
Hewlett Packard Enterprise announced at its networking investor day on Wednesday that cloud firm Vultr placed a $1.2 billion order for AMD Helios AI racks to deploy in Vultr's U.S. data centers — HPE's first order for the new AMD Helios system. Each rack holds 72 AMD Instinct MI455X GPUs alongside AMD EPYC 'Venice' CPUs and Pensando Vulcano network cards, connected by six HPE Juniper Networking QFX5252 switch trays for rack-scale Ethernet. Separately, HPE raised its long-term networking revenue outlook to a high-teens CAGR for fiscal 2026-2029 (from 5-7% for FY25-28), lifted its fiscal 2027 networking growth forecast to high-teens/low-20s (from 14-17%), and raised its Juniper acquisition cost-savings target to $800M annual run-rate by end of FY28 (from $600M). HPE shares rose nearly 6% in premarket trading.
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Start your free 14-day trialWho’s affected
- Hewlett Packard Enterprise (HPE): primary beneficiary — $1.2B order plus raised guidance; shares rose ~6% premarket and held +4-6% intraday
- AMD: major validation — first commercial order for the Helios rack platform (Instinct MI455X GPUs, EPYC Venice CPUs), strengthening its rack-scale alternative to Nvidia NVL systems
- Dell (DELL), Super Micro (SMCI): competitive pressure — a rival AI-server vendor winning a marquee order in the AI rack market
- Networking peers (Arista ANET, Cisco CSCO): HPE Juniper's sharpened high-teens growth target intensifies competition in AI networking
- Broadcom AVGO / Marvell MRVL: read-through — scale-up Ethernet networking gaining share in AI racks