Shares of Hewlett Packard Enterprise (HPE) climbed to a fresh record high on Wednesday, rising 5% to $65 after touching an intraday peak of $67. The strong session made the enterprise technology company one of the top gainers in the S&P 500 for the day and pushed the stock past its own previous record, which had been set just one week earlier.

The rally came on the heels of HPE's annual investor day, where executives laid out an updated strategic picture. Investor days are where management resets multi-year expectations for Wall Street, and this one produced two pieces of good news at once: a major new customer signing for the company's artificial intelligence server business and a brighter outlook for its networking unit.

Vultr Signs $1.2 Billion AI Server Order

Cloud infrastructure provider Vultr placed a $1.2 billion order for HPE's AI server racks. The deployment is built around AMD's Helios AI Rack, with each rack packing 72 AMD Instinct MI455X GPUs tied together by HPE's own networking equipment. According to HPE, this is the first major commercial order for systems based on the Helios platform. The company said the racks will enable Vultr to handle AI model training and inference workloads for its enterprise customers.

That first-order milestone amounts to the platform's initial external commercial validation, and it reflects how cloud infrastructure providers are up capacity to serve outsourced AI workloads for enterprise customers. The AMD-based configuration also stands out in a data-center hardware market long anchored by Nvidia's accelerators.

Networking Growth Targets Raised

The company didn't stop at the Vultr announcement. HPE also raised its fiscal 2027 networking revenue growth forecast, with the new target calling for expansion in the high-teens to low-20% range. That is up from the 14% to 17% range the company projected only weeks earlier in its third-quarter report.

Looking further ahead, HPE expects its AI infrastructure networking business to grow at an even faster pace through fiscal 2029. Management pointed to an annual growth rate in the low-to-high 50% range for that segment. Routing revenue, a smaller but steady component of the networking unit, is expected to grow in the low-to-high 20% range annually over the same period.

Networking now carries more weight in HPE's overall story following the roughly $14 billion acquisition of Juniper Networks, which closed in July 2025 and brought one of the industry's best-known switching and routing vendors under the same roof as HPE's own networking portfolio. Rami Rahim, who leads HPE's Networking division, said the rise of AI is pushing companies to rethink their network infrastructure. Faster chips need faster connections to keep pace, he noted, and that is precisely where HPE sees its opportunity.

Juniper Cost-Savings Goal Lifted 33%

HPE additionally updated its guidance for the Juniper Networks acquisition. The company now expects at least $800 million in annual run-rate cost savings by the end of fiscal 2028, a 33% increase from the prior target of at least $600 million. HPE said those savings should help keep networking operating margins in the mid-to-high 20% range from fiscal 2027 through 2029.

Stock Performance and Analyst Views

Investors have rewarded HPE handsomely this year. Shares are up roughly 170% since January, a gain fueled largely by demand for AI hardware.

The investor day also handed investors concrete checkpoints to track going forward: whether networking growth lands in the newly raised fiscal 2027 range, whether the AI networking business follows the low-to-high 50% trajectory through fiscal 2029, and whether the $800 million Juniper savings goal is reached by the end of fiscal 2028. The pace at which Vultr's racks move from order to deployment offers another gauge of HPE's AI server business in its early going.

Wall Street remains largely positive on the company, with the overall consensus standing at a Moderate Buy and an average price target of $70. Of the analysts tracked by Visible Alpha, seven rate HPE a buy and four rate it neutral, with a mean price target just above $70. A separate tally from TipRanks shows a similar picture: 10 buys, seven holds, and zero sells over the past three months. That consensus puts the average price target at $70.13, implying about 10% upside from current levels.