# HPE's networking revenue triples on AI demand — long catch-up trade on Cisco and Arista

_AI-generated trading idea · LONG · ANET, CSCO_

> Canonical page: https://commonquant.ai/research/for-you/hpe-s-networking-revenue-triples-on-ai-demand-long-catch-up--511303ff-6d83-4f90-980b-17f492086adb

HPE just had its best earnings beat in years, driven by a massive 148% surge in networking revenue as companies scramble to build out AI data centers.

## Idea

HPE's latest earnings report proved that AI infrastructure spending isn't just about computer chips—it's rapidly spilling over into the networking gear that connects massive data centers together. With HPE reporting a staggering 148% jump in networking revenue, Wall Street is waking up to the fact that AI requires massive networking upgrades. Other major networking companies like Cisco and Arista Networks are well-positioned to benefit from this exact spending wave but haven't seen their stock prices jump yet. Buying these lagging networking names offers a smart way to ride the AI boom at a much cheaper entry point.

## Key details

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

## Community

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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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