New orders for US-manufactured communications equipment, including fiber optics and routers, surged 43.1% year over year in July 2026. Data from the US Census Bureau shows a 35% increase in orders for the year to date through July.
Research from Dell’Oro Group indicates that AI data centers are the main driver for telecom equipment revenue, surpassing 5G infrastructure investment. Global telecom equipment revenue grew 5% year over year in the first half of 2026, largely due to AI connectivity needs.
In March 2026, core capital goods orders rose 3.3%, marking the largest monthly gain since 2020. Computers and electronic products were the primary contributors to this growth, highlighting the focus on AI infrastructure.
Keysight Technologies reported a 35% year-over-year revenue increase in its communications solutions segment for a single quarter. Meanwhile, HPE recorded record networking orders and backlogs in the third quarter of 2026, suggesting demand currently exceeds supply capacity.
