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Since last year, communication equipment has been in high demand as the need for connected and high-end devices increased amid the COVID-19 pandemic, with people spending most of their time at home. Furthermore, communication equipment, such as LANs, WANs, and routers, are expected to continue witnessing increasing demand in the 5G era because remote working is expected to dominate even after the pandemic is beaten. According to a report by Market Research Future, the global telecom equipment market is expected to grow at an 11.23% CAGR by 2025. Therefore, we think both CSCO and HPE should benefit.
CSCO stock has gained 8.7% in price over the past month, while HPE returned 4.4%. Also, CSCO’s 30.1% gains year-to-date are higher than HPE’s 23% returns. Also, in terms of their past six months’ performance, CSCO is the clear winner with 27.4% gains versus HPE’s 3.2%.
