HPE just posted 148% networking growth — ride the catch-up trade into Cisco and Arista
Hewlett Packard Enterprise just reported its biggest earnings beat since 2018, sending the stock up 30%. The standout number was a 148% surge in networking revenue, signaling that companies are spending heavily on network upgrades.
Idea
HPE's 148% jump in networking revenue tells us something bigger is happening — enterprise demand for networking gear is exploding, likely tied to AI data-center buildouts. When one company in a sector posts that kind of number, its direct competitors often get re-priced higher too as investors realize the tailwind isn't company-specific. Cisco and Arista Networks are the two largest pure-play networking vendors that stand to benefit from the same spending cycle. Both have lagged HPE's move today, creating a window to buy before the market re-rates them.