Zhi Tong Cai Jing·2025-12-22 02:08Group 1 - Morgan Stanley predicts that several networking and telecom equipment companies will perform well in 2026 due to ongoing investments in AI infrastructure [1] - Cisco Systems (CSCO.US) and Arista Networks (ANET.US) are highlighted as having opportunities in 2026, with Ethernet technology expected to continue expanding market share [1] - Cisco's target price has been raised from $82 to $91, while Arista's target price has been slightly lowered from $171 to $159 [1] Group 2 - Cisco has secured $1.3 billion in orders, driven by strong demand for optical devices from hyperscale customers for data center interconnects [2] - Cisco's AI business revenue is projected to reach approximately $3 billion in fiscal year 2026, growing from about 2% to nearly 5% of total revenue [2] - Motorola Solutions (MSI) rating has been upgraded from "hold" to "overweight," with a target price adjusted down from $471 to $436 [2] Group 3 - Companies such as Corning (GLW.US), Ciena (CIEN.US), Lumentum Holdings (LITE.US), and Coherent (COHR.US) are expected to outperform the market in 2026 due to investments in lasers and optical devices [3] - Pricing for 800ZR, EML lasers, and other optical components is considered particularly attractive [3] - Target prices have been raised for Corning from $82 to $98, Ciena from $195 to $213, Lumentum from $190 to $304, and Coherent from $150 to $180 [3]