HPE just doubled its networking revenue — ride the AI infrastructure breakout
Hewlett Packard Enterprise just reported its best quarterly earnings surprise since 2018, and the stock popped 30%. The standout number: networking revenue more than doubled, fueled by companies scrambling to build AI-ready data centers.
Idea
HPE quietly became a major AI infrastructure player. Networking revenue surged 148% last quarter — that's not a small beat, that's a sign the company is winning big contracts to wire up AI data centers. When a stock jumps 30% on that kind of fundamental shift, institutional investors often keep buying for weeks as they re-rate the company's growth potential. With the broader AI rally pushing the S&P 500 to all-time highs, HPE is hitting a sweet spot where momentum and fundamentals line up. A pullback to the day's opening price would be a reasonable entry point, with a stop below the pre-earnings close.