Hewlett Packard Enterprise (HPE.US) announced on Wednesday that it has secured a $1.2 billion order from cloud infrastructure company Vultr to supply Helios AI racks powered by AMD (AMD.US) chips. At the same time, Hewlett Packard Enterprise raised its outlook for fiscal year 2027 and beyond, citing growth in its networking business.
$1.2 Billion AI Rack Order from Vultr
Hewlett Packard Enterprise will provide Vultr with AMD Helios AI racks, to be deployed at Vultr's data centers in the United States. This marks Hewlett Packard Enterprise's first order for AMD Helios systems. Vultr is a cloud service provider headquartered in West Palm Beach, Florida. The company has collaborated with Juniper Networks for three years, and Juniper Networks was acquired by Hewlett Packard Enterprise in 2025. In addition, Vultr has received support from AMD.
Antonio Neri, President and CEO of Hewlett Packard Enterprise, said: "AI is driving the largest infrastructure buildout in history. We are working with AMD and Vultr to build an open architecture to accelerate the next phase of AI development. The AMD Helios solution demonstrates Hewlett Packard Enterprise's unique engineering capabilities, enabling the creation of a complete AI architecture, including rack-scale compute, scale-up networking, and direct liquid cooling, all delivered through our global services."
The AMD Helios AI rack includes Hewlett Packard Enterprise's scale-up network switches and software, configured with 72 AMD Instinct MI455X GPUs, as well as AMD EPYC CPUs, AMD Pensando Vulcano AI NIC networking, and AMD ROCm software.
Raises Fiscal Year 2027 Outlook
Hewlett Packard Enterprise also adjusted its outlook for fiscal year 2027 and beyond on Wednesday. The company now expects its networking business to grow at around 20% in fiscal year 2027, as its data center networking market share continues to expand. By fiscal year 2029, data center networking revenue is expected to grow at a compound annual growth rate of more than 50%.
Furthermore, Hewlett Packard Enterprise raised its synergy targets related to the acquisition of Juniper Networks. The company now expects to achieve $800 million in annualized cost savings by the end of fiscal year 2028, up from the previously announced target of at least $600 million. The company will host an investor day on Wednesday.
As one of the world's largest manufacturers of computing equipment, Hewlett Packard Enterprise has become a key beneficiary of demand for hardware needed to develop and deploy AI. Driven by the AI outlook, the company's stock price has more than doubled this year. As of press time, Hewlett Packard Enterprise rose more than 6% in pre-market trading, while AMD gained 0.5%.