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HPE’s networking glow-up is getting a mic check
Bank of America’s Wamsi Mohan is basically telling investors to keep an eye on Hewlett Packard Enterprise’s upcoming Networking Investor Day on Sept. 30. Why? Because HPE could use the stage to talk up its Helios AI rack opportunity with AMD, and maybe convince the market that networking is becoming more than just the quiet kid in the server aisle.
Mohan reiterated a Buy rating and an $88 price target, arguing that Helios — an open, integrated rack infrastructure setup for AI factories and supercomputing — could get pretty chunky over time. In analyst-speak, “could be big” is usually code for “this might matter more than you think.”
From switches to full racks: the revenue remix
The real kicker is the economics. Mohan thinks HPE could go from selling just the scale-up Ethernet switch in Helios racks — a business he pegs in the “few hundred million dollars” neighborhood — to supplying the full rack, which could mean several billion dollars over time.
That’s the sort of storyline Wall Street loves because it changes the menu, not just the price:
- switches only = decent business
- full racks = much fatter wallet
- networking + AI factory demand = potentially bigger growth engine
Juniper, Oracle, and the rest of the networking soap opera
The analyst also expects HPE to use the event to talk about Juniper integration, which matters because routing and WAN gear can strengthen HPE’s hand in service provider and enterprise markets. Add in potential commentary on Oracle and broader data center demand, and suddenly this investor day looks less like a sleepy roadshow and more like a “here’s the next chapter” moment.
Mohan expects HPE’s networking revenue to grow at a 15% to 20% CAGR from 2025 to 2030, which is the kind of number that gets investors leaning forward instead of scrolling past.
Big picture: this is still just an analyst call ahead of an event, not a fresh contract or a hard order book print. But if HPE can make Helios, Juniper, and networking growth feel real on Sept. 30, the market may finally stop treating networking like an afterthought.