Hewlett Packard's Helios Opportunity 'Could Be Big': Analyst

Bank of America Securities analyst Wamsi Mohan expects Hewlett Packard Enterprise Co‘s (NYSE:HPE) Networking Investor Day on Sept. 30 to include a financial update on Advanced Micro Devices Inc’s (NASDAQ:AMD) Helios AI Rack opportunity and longer-term networking growth. The Hewlett Packard Enterprise Analyst: Mohan reiterated a Buy rating and price target of $88. The Hewlett Packard Enterprise Thesis: Helios is an open and integrated rack infrastructure solution to power large-scale AI factories and supercomputing workloads. It "could be big — over time," Mohan said in the note. Check out other analyst stock ratings. He added that Hewlett Packard Enterprise could provide the following for Helios: The scale-up Ethernet switch used in Helios racks, an alternative to a Celestica switch. The company could provide this to all OEMs The complete Helios rack, including servers and networking. The revenue could grow "from a few hundred million dollars (providing just switches), to over several billion over time (providing full racks)," the analyst wrote. At the Networking Investor Day event, management may also update investors on the integration of Juniper (NYSE:JNPR), Mohan said. "JNPR’s routing provides competitive advantage in service provider and enterprise WAN markets with scale across opportunity increasing in relevance," the analyst wrote. With this, Hewlett Packard Enterprise could gain share in the data center market, he added. Mohan expects TAM (total addressable market) for networking (routing, data center, campus & branch, and Security markets) to grow faster than previously expected. He expects networking segment revenues to grow at a 15%-20% CAGR from 2025 to 2030. At the Networking Investor Day event, Hewlett Packard could also share insights on the opportunity with Oracle Corp (NYSE:ORCL), the analyst added. HPE Price Action: Shares of Hewlett Packard Enterprise had declined by 2.49% to $61.37 at the time of publication on Monday. Read Also: Nvidia Unveils AI Safety Platform to Keep AI Agents Under Control, Partners With Anthropic Image: Shutterstock