HPE stock closes at record high on growing networking orders, $1.2 billion AMD Helios order

Hewlett Packard Enterprise ( HPE ) stock closed at a record high price of $63.89 on Wednesday after shares jumped nearly 4% in the day's trading session.

The company finds itself at the center of the AI boom , which is driving a surge in demand for servers and high-performance networking infrastructure. Year to date, the stock has surged 166%.

"Demand is continuing to outpace supply. It's no doubt that we continue to be in a supply-constrained environment," Hewlett Packard Enterprise CFO Marie Myers told Yahoo Finance on Wednesday. "So certainly the tailwinds that we see around AI aren't changing anytime soon."

At its investor day, HPE executive vice president Rami Rahim said the company expects its fiscal 2026 networking orders to exceed $3 billion, surpassing its third quarter guidance of $2.5 billion to $3 billion.

The company also raised its fiscal year 2027 revenue growth outlook for the segment and now sees a growth rate in the high-teens to low-20s range. Networking segment operating margins are forecast in the mid-to-high 20s percent range.

"The expected market growth opportunities across networking are significant, and with the combination of Juniper and Aruba, we are positioned to win," Rahim said to investors.

Also on Wednesday, HPE announced it had secured a $1.2 billion order from Vultr, a privately held cloud infrastructure company, to deploy its Helios AI server rack s , powered by AMD chips, at Vultr's US data centers.

The deal marks HPE's first order for the new AMD Helios system.

"We unveiled our switch on the floor and, as I think our general manager of our data center business, Praveen Jain, said, it was literally a work of art," Myers said. "1,700 copper cables all packed into this massive switch, and we actually increased our revenue guide for '27 and '28. So we're really seeing the power of this portfolio coming together, and it's a super exciting day."