HPE just doubled its networking business — rival networking stocks may be next in line
Hewlett Packard Enterprise just posted its best earnings surprise in years, sending the stock up 30%. The standout number: networking revenue more than doubled, growing 148% from a year ago.
Idea
HPE's networking division just grew revenue by 148%, which signals massive enterprise demand for networking gear — likely driven by AI data centers needing to move huge amounts of data fast. But while HPE stock has already surged 30%, rival networking companies like Arista Networks and Juniper may not have fully priced in this industry-wide tailwind. When one company in a sector posts blowout numbers, its competitors often catch a bid days or weeks later as investors re-rate the whole group. The thesis is simple: HPE proved networking demand is booming, so the suppliers that specialize in networking should benefit too.