# AI data center build-out goes into overdrive — ride the networking boom with Arista and Cisco

_AI-generated trading idea · LONG · ANET, CSCO_

> Canonical page: https://commonquant.ai/research/for-you/ai-data-center-build-out-goes-into-overdrive-ride-the-networ--a31755fb-9d8a-48fe-8203-a545d90be9df

Hewlett Packard Enterprise just reported massive growth in its networking division, proving that companies are spending heavily on the physical equipment needed to connect AI systems together.

## Idea

When a major hardware provider like HPE sees its networking revenue nearly triple, it signals that the physical plumbing for AI is in high demand. This trend usually lifts other companies that build the backbone of data centers, like Arista Networks and Cisco. As long as AI companies keep raising cash to build bigger data centers, these infrastructure suppliers should see strong business.

## Key details

- Symbols: ANET, CSCO
- Timeframes: 1D
- Tags: \#infrastructure, \#ai, \#earnings

## 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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