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