HPE (HPE): Networking Growth Gives the AI Infrastructure Bull Case More Substance
Key takeaways
- The company gave investors a fresh AI networking update on June 1, when it reported fiscal second-quarter revenue of $10.7 billion, up 40% from the prior-year period.
- The strongest signal came from HPE’s networking business.
- The numbers are relevant to the AI networking theme because HPE is no longer just a server and hybrid-cloud story.
HPE (HPE): Networking Growth Gives the AI Infrastructure Bull Case More Substance Habib Ur Rehman Mon, June 15, 2026 at 2:28 AM GMT+7 1 min read HPE Hewlett Packard Enterprise Company (NYSE:HPE) is one of the best AI networking stocks to buy according to analysts. The company gave investors a fresh AI networking update on June 1, when it reported fiscal second-quarter revenue of $10.7 billion, up 40% from the prior-year period.
The strongest signal came from HPE’s networking business. Networking revenue reached $2.7 billion in the quarter, up 148.2% year over year, while Data Center Networking revenue rose 233.3% to $320 million. Cloud & AI revenue also reached $7.7 billion, up 22.9% from the prior-year period, supported by stronger server demand.
The numbers are relevant to the AI networking theme because HPE is no longer just a server and hybrid-cloud story. Its expanded networking portfolio, strengthened by Juniper, gives it exposure to campus, branch, routing, security, and data-center networking demand as enterprises build infrastructure for AI workloads. HPE also raised its fiscal 2026 revenue growth outlook to 29% to 33% and lifted its Networking segment growth outlook to 72% to 75%.