TLDR
- HPE stock jumped 4% in premarket trading Wednesday to around $64.30 after ending Tuesday down 1.8%.
- Vultr placed a $1.2 billion order for AMD Helios AI Rack by HPE systems, the first order for the new platform.
- HPE raised its fiscal 2027 networking revenue growth outlook to the high-teens to low-20s percent range.
- Data Center Networking revenue is projected to grow in the low-to-high 50s percent range through fiscal 2029.
- HPE lifted its Juniper Networks cost synergy target to $800 million in annual run-rate savings by fiscal 2028.
Hewlett Packard Enterprise stock climbed 4% in premarket trading Wednesday. The stock reached roughly $64.30 after closing down 1.8% on Tuesday.
Hewlett Packard Enterprise Company, HPE
The move came ahead of HPE’s networking investor day, held Wednesday in Sunnyvale, California. The event started at 11:30 a.m. Eastern time.
Investors piled in after HPE outlined its fiscal 2027 and long-term revenue plans for its networking business. The company pointed to AI demand as the main driver.
$HPE just landed a $1.2B Vultr order for $AMD Helios systems with Vultr saying AI demand “continues to outpace available capacity.”
That gives AMD first real Helios proof point at scale while HPE gets a clean win as AI spending moves deeper into full rack systems. pic.twitter.com/EF0BccxOtA
— Shay Boloor (@StockSavvyShay) September 30, 2026
HPE forecast networking revenue growth in fiscal 2027 between the high teens and low 20s percent. It expects an operating margin in the mid-to-high 20s for that period.
The company also gave a longer-term view. From fiscal 2026 through fiscal 2029, HPE expects networking revenue to keep growing at a high-teens percent pace.
What Drove the Rally
The biggest headline came from a new customer. Vultr, described as the world’s largest privately held cloud infrastructure company, placed a $1.2 billion order for AMD Helios AI Rack by HPE systems.
This marks the first commercial order for the new platform. The systems will be deployed across Vultr’s U.S. data centers.
HPE CEO Antonio Neri spoke at the investor day. He said AI is driving the largest infrastructure buildout in history and called the Vultr deal a cornerstone of HPE’s open AI infrastructure strategy with AMD.
The Helios system competes directly with Nvidia’s advanced AI data-center architecture. HPE and AMD will support Vultr as it works to meet demand for AI model training and inferencing.
HPE also raised its Juniper Networks cost synergy target. The company now expects $800 million in annual run-rate savings by the end of fiscal 2028, up from a prior goal of at least $600 million.
Analyst Reaction and Broader Context
Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating and an $88 price target ahead of the event. He called the Helios AI rack opportunity one that “could be big” over time.
The broader market gave HPE little help on Wednesday. The S&P 500 was roughly flat and the Nasdaq slipped slightly, meaning the rally was tied almost entirely to HPE’s own news.
Other AI server names like Dell and Super Micro had recently seen their own rallies cool off. That left HPE with fresh room to grab investor attention through concrete order flow rather than broad sector momentum.
HPE executive Rami Rahim commented on the company’s positioning in the AI market. “HPE is positioned to capture that demand through an integrated networking portfolio, expansive go-to-market scale, and greater cross-sell capabilities,” he said in a media release.
Data-center networking is the fastest-growing piece of the puzzle. HPE projects annual revenue growth there in the low-to-high 50s percent range through fiscal 2029.
HPE stock has climbed 156% so far this year as of Tuesday’s close. Wednesday’s premarket gain pushed the stock closer to its 52-week high of $65.65.
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