HPE wins $1.2 billion AMD server rack order from Vultr

September 30, 2026 at 04:46 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Hewlett Packard Enterprise Co. won a $1.2 billion order to provide Advanced Micro Devices Inc. server racks with HPE networking gear to cloud company Vultr. HPE will deploy AMD's Helios AI racks in US data centers belonging to Vultr, a West Palm Beach, Florida-based cloud provider. This represents HPE's first order for these systems.

Key Facts

HPE won a $1.2 billion order to provide AMD server racks with HPE networking gear to Vultr.
The order is for AMD's Helios AI racks, which contain chips for AI work and use HPE's networking switches and software.
Vultr is a West Palm Beach, Florida-based cloud provider backed by AMD.
HPE expects its data center networking revenue to grow at a low-to-high 50s percent CAGR through fiscal 2029.
HPE raised its networking segment revenue growth projection to high-teens percent CAGR from FY26 through FY29.

The Order

HPE will deploy AMD's Helios AI racks in US data centers belonging to Vultr. The racks contain chips for artificial intelligence work and use HPE's networking switches and software. This represents HPE's first order for these systems. Vultr worked for three years with Juniper Networks, which was acquired by HPE in 2025.

Networking Growth Forecast

HPE said it expects its data center networking revenue to grow at a low-to-high 50s percent compound annual growth rate through fiscal 2029. HPE raised its projections for its networking segment revenue to grow at a high-teens percent CAGR from FY26 through FY29. The company also disclosed an expectation that the segment will maintain an operating margin target of mid-to-high 20s percent from FY27 through FY29. HPE said it sees a broad and expanding networking opportunity across its portfolio, serving enterprise and service provider customers, including hyperscalers and neoclouds.

Market Impact

HPE, one of the largest makers of computing equipment, has become a key beneficiary of demand for hardware to develop and deploy artificial intelligence. Its shares have more than doubled this year, fueled by its AI prospects. C. R. Howdyshell, CEO of Advizex, a Myriad360 company, said HPE has demonstrated proven data center networking success with large enterprise customers.