TLDR
- HPE shares hit a fresh record, up 5% to $65 after an intraday high of $67.
- The company raised its fiscal 2027 networking revenue growth target to the high teens-to-low 20% range.
- HPE landed a $1.2 billion AI server deal with cloud firm Vultr using AMD’s Helios racks.
- HPE raised its Juniper cost savings target by 33% to at least $800 million annually by fiscal 2028.
- Wall Street rates HPE a Moderate Buy, with an average price target of $70.
Hewlett Packard Enterprise stock touched a new record high Wednesday. Shares climbed 5% to $65, with an intraday peak of $67, making HPE one of the top gainers in the S&P 500 for the day.
Hewlett Packard Enterprise Company, HPE
The rally came after HPE’s annual investor day, where the company delivered two pieces of good news at once. First, a big new customer. Second, a brighter outlook for its networking business.
Cloud provider Vultr signed a $1.2 billion order for HPE’s AI server racks. The deal uses AMD’s Helios AI Rack, with each rack packing 72 AMD Instinct MI455X GPUs tied together with HPE’s own networking gear.
This is the first major commercial order for the Helios-based systems. HPE said the racks will help Vultr handle AI model training and inference for its enterprise customers.
A Bigger Networking Target
HPE didn’t stop at the Vultr news. The company also raised its fiscal 2027 networking revenue growth forecast.
The new target calls for growth in the high teens to low 20% range. That’s up from the 14% to 17% range HPE gave just weeks ago in its third-quarter report.
Looking further out, HPE expects its AI infrastructure networking business to grow even faster through fiscal 2029. Management pointed to an annual growth rate somewhere between the low and high 50% range for that piece of the business.
Routing revenue, a smaller but steady part of the networking unit, is expected to grow in the low-to-high 20% range annually over the same stretch.
Rami Rahim, who leads HPE’s Networking division, said AI is pushing companies to rethink their network infrastructure. Faster chips need faster connections, and that’s where HPE sees its opening.
Juniper Savings Get a Boost Too
HPE also updated guidance on its Juniper Networks acquisition. The company now expects at least $800 million in annual run-rate cost savings by the end of fiscal 2028.
That’s a 33% jump from the prior target of at least $600 million. HPE said those savings should help keep networking operating margins in the mid-to-high 20% range from fiscal 2027 through 2029.
Investors have rewarded the stock hard this year. HPE shares are up roughly 170% since January, fueled largely by demand for AI hardware.
Wall Street remains largely positive on the name. Of the analysts tracked by Visible Alpha, seven rate HPE a buy and four rate it neutral, with a mean price target just above $70.
A separate tally from TipRanks shows a similar picture: 10 buys, seven holds, and zero sells over the past three months. That consensus puts the average price target at $70.13, implying about 10% upside from current levels.
HPE’s stock closed in on its own prior record, set just last week, before Wednesday’s move pushed it past that mark during the session.
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