HPE Lands $1.2B Vultr AI Networking Order

Cloud provider Vultr placed a $1.2 billion order for HPE's AMD-based Helios AI platform, including HPE Networking scale-up switching and software, marking HPE's first commercial win for the system. The deal pushed HPE to raise its fiscal 2026 cumulative AI networking order forecast above $3 billion and lift its fiscal 2027 networking growth outlook.

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The Vultr order is a concrete proof point that AI-driven demand for networking gear is outstripping supply, prompting HPE to double its component purchase commitments to convert backlog into revenue. HPE raised its FY2027 networking growth guidance to high-teens/low-20% and expects operating margins to expand into the mid-to-high 20% range, signaling networking could become a structurally higher-margin business post-Juniper. The deal also validates AMD's Helios rack-scale platform as a viable alternative to Nvidia-centric AI clusters among neocloud buyers like Vultr. Execution risk remains high: HPE must convert a backlog growing 3.5x faster than revenue into actual shipments and cash flow. Investors reacted positively, with shares up about 4%, reflecting optimism about HPE's AI infrastructure positioning relative to rivals.