Key insights
- Hewlett Packard Enterprise (HPE) shares surged to a record high following an announcement at its investor day. The company raised its fiscal 2027 revenue growth targets for its networking segment to the high teens to low 20s, up from previous guidance. Additionally, HPE secured a $1.2 billion deal with Vultr for its AMD Helios AI server rack. These developments, driven by the AI boom, have significantly boosted HPE's stock performance.
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Hewlett Packard Enterprise shares rallied to a record high after the networking hardware maker raised its growth targets and said it struck a big server deal.
Shares of HPE (HPE) were up 5% in recent trading to $65, leaving them on track to top last week’s record close, after reaching an intraday high at $67. It was one of the biggest gainers in the S&P 500 Wednesday.
At the company’s annual investor day, HPE said it now expects revenue growth from its networking segment in the high teens to low 20s in fiscal 2027, up from the 14% to 17% range the company outlined in its third-quarter report earlier this month.1
HPE also said it struck a major deal for its AMD (AMD) Helios AI server rack, with a $1.2 billion order from private cloud firm Vultr. The company said the deal will “support Vultr’s effort to meet service provider and enterprise demand for model training and inferencing workloads in their AI data centers.”2
Wall Street is broadly bullish on HPE, with seven of the 11 analysts tracked by Visible Alpha recommending buying the stock, with the other four holding neutral ratings. Their mean target is just over $70.
With Wednesday’s gains, HPE shares are up about 170% since the start of the year as the AI boom has driven billions of dollars to hardware makers.