# HPE's networking revenue just tripled on AI demand — buy the networking suppliers still playing catch-up

_AI-generated trading idea · LONG · ANET, CSCO, FLNC_

> Canonical page: https://commonquant.ai/research/for-you/hpe-s-networking-revenue-just-tripled-on-ai-demand-buy-the-n--8634d6ae-44c2-4a75-aa0b-beb94dacef17

Hewlett Packard Enterprise just reported 148% growth in networking revenue thanks to booming AI data center demand, sending its stock up 30%. The same AI buildout wave is also lifting companies like Fluence, which just announced a partnership with Nvidia.

## Idea

HPE's networking revenue just tripled because AI data centers need massive new networking gear to connect thousands of chips together. HPE already jumped 30%, but the spending wave is just getting started — Alphabet alone is raising $80 billion for AI infrastructure. That money flows to networking suppliers like Arista Networks (the market leader in AI data center switching) and Cisco, which haven't moved as dramatically. Fluence, which builds the power systems AI data centers need, is another beneficiary that just inked a deal with Nvidia. The AI buildout is broad, and investors can catch the next leg by owning the picks-and-shovels companies that haven't fully priced in the demand surge.

## Key details

- Symbols: ANET, CSCO, FLNC
- Timeframes: 1D
- Tags: \#AI, \#networking, \#infrastructure

## Community

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## News sources

- [AI Data Center Supplier Fluence Soars On Nvidia Partnership](https://www.investors.com/news/ai-data-center-supplier-fluence-soars-nvidia-partnership/?src=A00220&yptr=yahoo) — Investor's Business Daily
- [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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