Hewlett Packard Enterprise stock rises 22.3% on AI demand

Hewlett Packard Enterprise (HPE) saw its stock rise 22.3% in September, driven largely by the surge in demand for artificial intelligence infrastructure. The company reported fiscal third-quarter revenue of $12.2 billion, a 34% year-over-year increase that exceeded analyst expectations.

Key growth drivers included a 30% jump in AI systems orders and a record $700 million in AI networking orders. HPE also secured a $1.2 billion order from cloud provider Vultr for AMD Helios AI racks, marking the first order for that specific system. Additionally, the company expanded its partnership with Oracle to supply hardware for a gigawatt-scale AI cloud build-out and entered a multibillion-dollar contract with an unnamed hyperscaler for AI inferencing servers.