(Reuters) -Hewlett Packard Enterprise beat Wall Street estimates for third-quarter revenue on Wednesday, driven by strong demand in its server and networking segments.

Demand for AI servers has surged as big tech companies and startups race to deploy generative AI services, such as ChatGPT, which require immense computing power.

The surge in GenAI has boosted demand for HPE’s AI-optimized servers, powered by Nvidia processors, which can run complex applications. HPE integrated Nvidia’s latest GPUs into its server portfolio in 2025.

“Customer demand stretched broadly across our portfolio and was particularly strong in our Server and Networking segments,” CEO Antonio Neri said.

HPE’s acquisition of Juniper expands its networking business, a segment that generally grows faster compared to

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