March 9 (Reuters) – Hewlett Packard Enterprise forecast second-quarter revenue above Wall Street estimates on Monday, betting on growing demand for its artificial intelligence-powered servers that are equipped with Nvidia’s chips.

Shares of the company rose 3.2% in extended trading.

Big Tech firms like Alphabet, Microsoft, Amazon and Meta are expected to spend at least $630 billion to build AI infrastructure this year, which would boost demand for server and data center equipment from vendors such as Dell, HPE and Super Micro Computer.

“Demand for our products and solutions was strong, with orders increasing double digits year over year across all segments,” HPE CEO Antonio Neri said in a statement.

The company expects quarterly revenue to be between $9.6 billion and $10.0 billion, above the analysts’ average estimate of $9.58 billion, according to data compiled by LSEG.

Revenue for the first quarter rose around 18% to $9.30 billion, missing estimates of $9.33 billion.

The company’s adjusted earnings per share of 65 cents exceeded estimates of 59 cents.

U.S. trade regulations and surging memory chip costs due to the buildout of AI infrastructure have forced companies to increase prices in a bid to offset cost pressures.

Almost all servers have memory chips that hold data and instructions, keeping processors running at high speed, which is paramount for AI applications.

HPE raised its fiscal 2026 adjusted EPS forecast to $2.30 to $2.50, compared with its prior expectations of $2.25 to $2.45.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan Barona)