Wall Street Unveils AI Winners: Arista And Ciena Lead A Multi-Billion Dollar Backbone Explosion

Benzinga_recent_news03-11

Needham analyst Ryan Koontz said several networking and optical technology companies are positioned to benefit from rising hyperscale cloud spending as artificial intelligence infrastructure continues...

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Discover why Arista (ANET) and Ciena (CIEN) are hiking revenue targets as Microsoft and Meta pour billions into the physical infrastructure of the future.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4587":"ChatGPT概念","BK4528":"SaaS概念","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0289961442.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (SGD) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4515":"5G概念","LU0240878834.USD":"SCHRODER ISF GLOBAL SMALL COMPANIES \"A\" (USD) INC AV","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","LU0205194284.USD":"SCHRODER ISF US SMALL & MID-CAP EQUITY \"A\" (USD) INC AV","BK4600":"加密货币概念","LU0823421333.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) ACC","BK4588":"碎股","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","LU0012050646.USD":"SCHRODER ISF US SMALLER COMPANIES IMPACT \"A\" (USD) INC AV","LU0823421416.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) INC","LU0511384066.AUD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (AUDHDG) ACC","BK4595":"比特币概念","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","BK4007":"制药","BK4551":"寇图资本持仓","LU0240877869.USD":"SCHRODER ISF GLOBAL SMALL COMPANIES \"A\" ACC","CIEN":"Ciena科技","AIYY":"YIELDMAX AI OPTION INCOME STRATEGY ETF","BK4023":"应用软件","LU0106261612.USD":"SCHRODER ISF US SMALLER COMPANIES IMPACT \"A\" ACC","ANET":"Arista Networks, Inc.","BK4543":"AI","BK4020":"通信设备","LU0082616367.USD":"摩根大通美国科技A（dist）","LU2360107168.USD":"BGF NEXT GENERATION TECHNOLOGY \"A4\" (USD) INC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","BK4585":"ETF&股票定投概念","LU0205193047.USD":"SCHRODER ISF US SMALL & MID-CAP EQUITY \"A\" (USD)  ACC","LU0963586101.USD":"ALLIANZ GLOBAL SMALL CAP EQUITY \"AT\" ACC","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","AI":"C3.ai, Inc.","BTFL":"Defiance Daily Target 2X Long BITF ETF"},"translate_title":"华尔街公布人工智能赢家：Arista和Ciena引领数十亿美元的骨干爆炸","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AI":0.65,"CIEN":1.93,"AIYY":0.6,"ANET":1.95,"BTFL":0.6},"content_text":"Needham analyst Ryan Koontz said several networking and optical technology companies are positioned to benefit from rising hyperscale cloud spending as artificial intelligence infrastructure continues to expand.\nThe analyst noted that Arista's switching hardware and operating system remain highly competitive in traditional cloud networks, where Microsoft increased spending significantly in 2025.\nThe company is also expanding its role in AI networking and raised its 2026 AI revenue target from $2.75 billion to $3.25 billion.\nHe added that Arista's Jericho-based products could play an important role in large \"scale-across\" networking projects that connect GPU clusters across multiple campuses.\nKoontz also highlighted Ciena as a key beneficiary of hyperscale networking investments.\nIn the company's first quarter of fiscal 2026, direct cloud providers accounted for 42% of Ciena's revenue, while global telecom and cable customers made up most of the remainder.\nCiena has secured wins with three of the four major cloud operators for large-scale networking projects that link AI data centers across wide-area networks. Koontz said these \"scale-across\" projects could support a long-term revenue opportunity as AI infrastructure expands.\nThe analyst expects strong demand for optical components to benefit companies such as Lumentum, Applied Optoelectronics, and Coherent as hyperscalers upgrade networking speeds.\nHe said Lumentum generates about half of its revenue from datacom products and around 40% from telecom equipment.\nThe company is expanding production of electro-absorption modulated lasers (EMLs), which are widely used in high-speed optical transceivers.\nLumentum has also secured significant demand for optical circuit switching (OCS) systems, with a backlog exceeding $400 million, much of which is expected to ship in the second half of 2026.\nKoontz also highlighted Applied Optoelectronics as another beneficiary of hyperscale spending. Data center products accounted for 43% of the company's 2025 revenue, rising to 56% in the fourth quarter as demand increased.\nMicrosoft remains AAOI's largest transceiver customer, but Koontz said Amazon could become a major customer as the company ramps 400G and 800G optical transceivers.\nAAOI recently received $200 million in initial orders for its 1.6T transceiver, with shipments expected in the second half of 2026.\nThe analyst raised the firm's price forecast to $130 from $80.\nHe also pointed to Coherent, which derives roughly 50% of its revenue from datacom and about 20% from telecom markets.\nCoherent is also expanding its 6-inch indium phosphide fabrication facility, which could significantly increase production capacity and reduce manufacturing costs.\nKoontz said Fabrinet and Viavi Solutions also stand to benefit from hyperscale investment.\nFabrinet generates about 35% of its revenue from data center products and 49% from telecom equipment, both of which depend heavily on hyperscaler spending.\nThe company manufactures optical transceivers used in Nvidia systems and supports the ramp of Amazon's Trainium chip infrastructure, which Koontz expects could generate more than $150 million in quarterly revenue as production scales.\nMeanwhile, Viavi Solutions derives about 45% of revenue in its Network and Service Enablement segment from the data center ecosystem, including optical modules and semiconductor components.\nThe analyst said the company's acquisition of high-speed Ethernet testing products expands its ability to support new optical networking speeds.\nAs data center networks transition to faster optical connections, demand for testing equipment is expected to increase because each new speed generation requires updated tools.\nOverall, he said hyperscale capital spending and AI infrastructure expansion should continue driving demand across the networking and optical supply chain, positioning these companies to benefit from long-term cloud and AI growth.\nPrice Actions: Ciena shares were up 7.71% at $343.10 at the time of publication on Tuesday, according to Benzinga Pro data. Arista Networks shares were up 2.39% at $140.44.\nPhoto: Shutterstock\nTo add Benzinga News as your preferred source on Google, click here.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"corporation","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2618968616","isCrawlerRequest":true}