HPE Technology (HPE.US) secures Vultr's $1.2 billion AI rack order increase guidance for FY2027

The Zhitong Finance App learned that HPE.US (HPE.US) announced on Wednesday that it has won an order worth 1.2 billion US dollars from cloud infrastructure company Vultr to supply Helios AI racks equipped with AMD (AMD.US) chips. Meanwhile, HPE raised its outlook for the 2027 fiscal year and beyond, citing growth in the network business.

Won Vultr's $1.2 billion AI rack order

HPE Technology will supply AMD Helios AI racks to Vultr, which will be deployed at Vultr's data center in the US. This is HPE Technology's first order for an AMD Helios system.

Vultr is a cloud service provider headquartered in West Palm Beach, Florida. The company worked with Juniper Networks for three years, and Juniper Networks was acquired by HPE Technology in 2025. Additionally, Vultr is supported by AMD.

Antonio Neri, President and CEO of HPE Technology, said, “AI is driving the largest infrastructure construction in history. We're working with AMD and Vultr to build an open infrastructure to accelerate the next phase of AI development. The AMD Helios solution showcases HPE Technologies' unique engineering capabilities to create a complete AI architecture, including rack-level computing, vertical scaling networks, and direct liquid cooling, all delivered by our global services.”

The AMD Helios AI rack includes HPE's network vertical expansion switch and software, equipped with 72 AMD Instinct MI455X GPUs, an AMD EPYC CPU, AMD Pensando Vulcano AI NIC network, and AMD ROCM software.

2027 outlook raised

HPE Technology also adjusted its outlook for the 2027 fiscal year and beyond on Wednesday. The company currently expects the growth rate of its network business to reach about 20% in the 2027 fiscal year as the market share of data center networks continues to expand. Data center networking business revenue is expected to grow at a CAGR of more than 50% by fiscal year 2029.

Additionally, HPE Technology raised collaboration targets related to the acquisition of Juniper Networks. The company currently expects to achieve annualized cost savings of 800 million US dollars by the end of fiscal year 2028, which is higher than the previously announced target of at least 600 million US dollars. The company will host an investor exchange day on Wednesday.

As one of the world's largest manufacturers of computing devices, HPE has become a key beneficiary of the hardware requirements needed to develop and deploy AI. Driven by AI prospects, the company's stock price has more than doubled this year.

As of press release, HPE was up more than 6% before the market, and AMD was up 0.5%.