HPE’s 30% Growth in Router Orders Bodes Well for Nokia’s Hyperscale Sales
Like Dell last week, HPE reported earnings that significantly exceeded expectations, driven primarily by AI-related infrastructure demand. For Nokia investors, one particularly interesting detail was that HPE reported a nearly 30% increase in router business orders, with growth driven by connectivity investments between large cloud service providers’ data centers.
HPE/Juniper and Nokia compete partly in the same router markets, so HPE’s strong order growth, record order backlog, and positive outlook suggest that market demand is very robust.
Nokia, for its part, recently announced design wins for IP routing solutions with hyperscale customers, and Justin Hotard stated in the Q1 earnings call that he expects these wins to start reflecting in orders during Q2. This is yet another indication that the tailwind from the AI boom may soon extend beyond Nokia’s Optical Networks business to include IP Networks as well.