HPE Lifts Networking Outlook as Vultr Places $1.2B AMD Helios AI Rack Order

Hewlett Packard Enterprise has increased its fiscal 2027 revenue-growth outlook for its Networking business, citing rising AI adoption and expected demand across data-centre networking and routing.

The uplift followed HPE's first order for its AMD Helios AI Rack systems: cloud provider Vultr placed a $1.2 billion order for the systems, which include HPE networking hardware and software, for deployment within Vultr's cloud infrastructure.

HPE also doubled its quarter-over-quarter networking supply purchase commitments in the third quarter of fiscal 2026, a move aimed at supporting expected demand and heading off supply constraints. The company has leaned on its 2025 acquisition of Juniper Networks, which added a networking business large enough to move its growth numbers.

The numbers illustrate how AI infrastructure spending has become the dominant growth story in enterprise hardware. Large language-model training and inference require dense, high-bandwidth interconnects between thousands of accelerators, making networking — not just compute — a bottleneck and a business opportunity. Whether the demand is durable or a build-out bubble remains the industry's central debate.