Hewlett Packard Enterprise (HPE) news that moved the stock

What happened

Daiwa Securities Group upgraded Hewlett Packard Enterprise from a 'neutral' rating to 'outperform' in a research report issued Friday, Oct. 2, with a $75.00 price target implying about 16% upside from the stock's previous close, per Briefing.com via MarketBeat. The upgrade follows a wave of bullish Street revisions this week after HPE's $1.2B Vultr order for AMD Helios AI racks.

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.