HPE boosts networking growth outlook, gets $1.2 billion AI order from cloud firm Vultr
Source: Reuters ·
Sept 30 () - Hewlett Packard Enterprise on Wednesday raised its long-term revenue growth forecast for its networking business, driven by the AI boom and announced a $1.2 billion order to provide AMD server racks to cloud firm Vultr.
From the source
Sept 30 (Reuters) - Hewlett Packard Enterprise on Wednesday raised its long-term revenue growth forecast for its networking business, driven by the AI boom and announced a $1.2 billion order to provide AMD server racks to cloud firm Vultr. Shares of HPE rose nearly 6% in premarket trading, as the company hosted its networking investor day. • The company now expects networking segment revenue to grow at a compound annual growth rate in the high teens from fiscal 2026 to fiscal 2029, up from its previous forecast of 5% to 7% annual growth from fiscal 2025 through fiscal 2028. • HPE, which competes with Dell and Super Micro Computer, is benefiting as customers increasingly buy its servers and networking products to power AI applications such as ChatGPT. • The company's networking unit, which expanded after the acquisition of Juniper Networks last year, mainly consists of products and services that connect servers, data centers and other devices to networks and software…