Overview
- Hewlett Packard Enterprise announced a confirmed $1.2 billion order from cloud provider Vultr for AMD Helios rack systems, a deal disclosed at its Networking Investor Day and described by the company as the first commercial Helios sale.
- Each Helios rack can contain up to 72 AMD Instinct MI455X GPUs with Zen 6 EPYC CPUs and Pensando networking, and Vultr plans pre-orders and deployments across U.S. data centers beginning in Q4 2026.
- HPE raised its fiscal‑2027 networking revenue growth target to the high teens into the low‑20s and increased expected cost synergies from the Juniper acquisition to $800 million in annual run rate by fiscal 2028.
- Company executives warned orders are growing faster than revenue and cited component shortages such as memory and NAND flash as the main constraint, prompting HPE to double networking supply‑purchase commitments to help convert backlog into shipped revenue.
- Investors reacted positively, sending HPE shares to record levels, while analysts say the Vultr win is an important early proof point for Helios but that durable revenue and margin gains depend on HPE meeting production and fulfillment timelines.