# HPE's networking revenue just tripled — ride the catch-up wave in Arista and Cisco

_AI-generated trading idea · LONG · ANET, CSCO_

> Canonical page: https://commonquant.ai/research/for-you/hpe-s-networking-revenue-just-tripled-ride-the-catch-up-wave--22269475-4a69-49a4-9123-ceb30e388bc9

Hewlett Packard Enterprise just posted its best earnings surprise in years, sending the stock up 30%. The standout number: networking revenue grew 148%, meaning businesses are spending heavily on the wiring that connects data centers and AI systems.

## Idea

HPE's 148% networking growth isn't just a one-company story — it signals that enterprises everywhere are upgrading their network infrastructure to handle AI workloads. Arista Networks is the purest play on data-center networking and stands to benefit from the same spending wave, yet its stock hasn't popped the way HPE's has. Cisco is another large-cap name in the space that could catch up. When one player in a sector posts blowout numbers, money often rotates into the peers that haven't moved yet.

## Key details

- Symbols: ANET, CSCO
- Timeframes: daily
- Tags: \#earnings, \#networking, \#ai\_infrastructure

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## News sources

- [HPE skyrockets 30% on biggest earnings beat since 2018](https://www.cnbc.com/2026/06/01/hpe-stock-earnings-q2.html) — CNBC
- [HPE's stock soars toward record gain as earnings show a networking bonanza](https://www.marketwatch.com/story/hpes-stock-soars-toward-record-gain-as-earnings-show-a-networking-bonanza-2bde2d3a?mod=mw_rss_topstories) — MarketWatch

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