Hewlett Packard Enterprise (HPE) shares are extending gains on Sept. 30 after management announced a $1.2 billion order from Vultr to deploy AMD’s (AMD) cutting-edge Helios AI rack architecture. The landmark deal with the cloud infrastructure provider underscores HPE’s growing footprint in high-density artificial intelligence (AI) deployments.
The disclosure arrives at a time when Hewlett Packard stock is already trading at record levels, up a remarkable 170% versus the start of this year.
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www.barchart.comSignificance of the Vultr Deal for HPE Stock
HPE shares rallied because of a $1.2 billion order from Vultr, the world’s largest privately held cloud infrastructure firm, to deploy full rack-scale systems powered by the AMD Helios AI platform.
Each integrated rack combines 72 AMD Instinct MI455X GPUs, AMD EPYC processors, Pensando Vulcano AI network interface cards, and Hewlett Packard’s proprietary direct liquid cooling and scale-up switching software.
For HPE, this order serves as a major validation of its complete AI hardware and networking stack.
It highlights the company’s ability to capture massive capital expenditure as hyperscalers and cloud providers diversify beyond legacy chip suppliers to build out next-generation AI data centers.
What Else Makes HPE Shares Attractive in 2026?
Beyond an immediate AMD-driven boost, HPE’s updated long-term financial guidance provides investors with a compelling growth narrative.
Also on Wednesday, management raised its 2027 outlook, projecting high-teens to low-twenties percentage growth in its core networking segment.
More importantly, Hewlett Packard now expects its data center networking revenue to compound at an annual growth rate in the low-to-high 50% range through 2029.
Coupled with recurring revenue expansion from its GreenLake hybrid cloud consumption platform and industry recognition as a market leader, HPE is successfully transitioning from a traditional hardware vendor into a high-margin AI infrastructure powerhouse.
Note that Hewlett Packard Enterprise has a history of gaining significantly in the final quarter of the year — a seasonal trend that further improves its near-term appeal.
What’s the Consensus Rating on Hewlett Packard?
Wall Street analysts also remain bullish on Hewlett Packard shares for the next 12 months.
The consensus rating on HPE sits at “Moderate Buy,” with price targets as high as $88 indicating potential upside of more than 35% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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