Dell and HPE stock roughly double amid AI infrastructure boom; Cisco rallies 40% but lags peers despite new networking announcements.

Dell reported AI server revenue of $16.1 billion last quarter, up 757% from a year earlier, with $24.4 billion in new orders. The company lifted its fiscal-year AI server revenue outlook to roughly $60 billion. HPE received a similar boost after investors began treating its AI server business as a beneficiary of enterprise AI spending.

Unlike Dell and HPE, Cisco occupies a different position in the AI ecosystem—networking rather than servers. At Cisco Live, Cisco unveiled AI-focused announcements including Cisco Cloud Control (an AI-powered network management platform), new Silicon One-powered switches and routers, and security products for AI-related cyber threats. The company's next-generation G300 Silicon One chip will deliver roughly twice the speed of its predecessor.

Hyperscaler capital spending climbed from roughly $261 billion in 2024 to an estimated $805 billion this year, and is seen approaching $1.6 trillion annually by 2031, according to 22V Research citing Goldman Sachs. Goldman Sachs analyst Michael Ng said Cisco Live reinforced the company's ability to benefit from customers investing in AI infrastructure and preparing for AI-driven security risks.