HPE's networking revenue triples on AI demand — buy the data-center suppliers still catching up
Hewlett Packard Enterprise (HPE) reported that its networking revenue more than doubled — up 148% — thanks to booming demand for AI data center infrastructure. The stock surged 30% in a single day, and other AI-related suppliers like Fluence Energy also jumped on a new Nvidia partnership.
Idea
HPE just revealed that its networking revenue exploded 148% in a single quarter — proof that companies are spending aggressively to wire up AI data centers. HPE's stock already popped 30%, but the real opportunity is in the networking suppliers that power these buildouts and haven't yet re-priced. Arista Networks (ANET) and Broadcom (AVGO) are two of the biggest players in data center networking and stand to benefit from the same spending wave. Fluence Energy (FLNC), which just announced a new Nvidia partnership for AI data centers, adds another way to play the theme. With Anthropic filing for its blockbuster IPO and Nvidia expanding into new markets, AI infrastructure is the dominant story right now — and the networking layer is where the dollars are flowing fastest.
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News sources
- HPE's stock soars toward record gain as earnings show a networking bonanza — MarketWatch
- AI Data Center Supplier Fluence Soars On Nvidia Partnership — Investor's Business Daily
- HPE skyrockets 30% on biggest earnings beat since 2018 — CNBC