HPE’s $1.2 Billion Helios Win Comes with Bigger Networking Growth Bet

Hewlett Packard Enterprise Co (NYSE:HPE) shares rose Wednesday after the company secured a $1.2 billion AI infrastructure order from Vultr and raised its fiscal 2027 Networking growth outlook. Technology stocks also traded higher, with the sector up 1.09% and the S&P 500 gaining 0.50%. • Hewlett Packard Enterprise stock is surging to new heights today. What’s behind HPE gains? Vultr Places $1.2 Billion AI Infrastructure Order Vultr will deploy AMD Helios AI Rack by HPE systems at its U.S. cloud data centers to support AI model training and inference workloads. The order is HPE’s first for the AMD Helios platform, which combines AMD rack-scale computing with HPE Networking hardware and software. HPE’s AMD Helios AI Rack forms part of its AI Data Center Solutions portfolio and is designed with AMD for scalable AI workloads. HPE CEO Antonio Neri said, "AI is driving the largest infrastructure buildout in history and together with AMD and Vultr, we are building an open foundation to accelerate the next phase of AI." The order also adds context to a recent Bank of America Securities note. Analyst Wamsi Mohan said HPE’s Helios opportunity "could be big — over time," with revenue potentially growing from a few hundred million dollars from switches to several billion dollars from full racks. Mohan maintained a Buy rating and an $88 price target. Read Also: Nvidia Unveils AI Safety Platform to Keep AI Agents Under Control, Partners With Anthropic HPE Raises Networking Growth Outlook HPE raised its fiscal 2027 Networking segment revenue growth outlook to the high-teens to low-20% range. The company expects Networking operating margins in the mid-to-high 20% range. The company now expects Networking revenue to grow at a high-teens CAGR from fiscal 2026 through fiscal 2029. HPE projects Data Center Networking revenue to grow at a low-to-high 50s% CAGR through fiscal 2029. Routing is expected to grow at a low-to-high 20% rate, while Campus & Branch and Security are each projected to grow at high-single-digit rates. The company also raised its Juniper Networks cost-synergy target to $800 million in annual run-rate savings by the end of fiscal 2028, up from at least $600 million previously. HPE Technical Outlook: Momentum Near 52-Week Highs HPE is trading near its 52-week high of $65.65, with shares at about $65.18. The stock remains 11.6% above its 20-day SMA and 19.9% above its 50-day SMA. The broader trend remains bullish, with the 20-day SMA above the 50-day and the 50-day above the 200-day following an April golden cross. MACD is also above its signal line with a positive histogram, indicating stronger upside momentum. Key Support: $55, near the 50-day SMA. See More: Top Momentum Stocks Analyst Consensus and Recent Actions The stock carries a Buy consensus rating with an average price target of $69.18, ranging from $54 to $86 across 34 analysts. Recent analyst actions include: Evercore ISI Group: Downgraded to In-Line, maintained $65 target on Sept. 14 Argus Research: Buy, maintained $70 target on Sept. 4 Raymond James: Outperform, raised target to $86 on Sept. 3 HPE Stock Price Action HPE shares were up 6.68% to $64.98 at the time of publication on Wednesday, according to Benzinga Pro data. Read Also: What Is Going on With Super Micro Stock on Wednesday? Photo: PJ McDonnell / Shutterstock