Group 1: Cisco and Arista Networks - Morgan Stanley predicts that Cisco Systems (CSCO.US) and Arista Networks (ANET.US) will perform well in 2026 due to the ongoing construction of AI infrastructure and the expansion of Ethernet technology market share [1] - Cisco's stock price is expected to rise driven by opportunities from sovereign nations and optical business, with a target price increase from $82 to $91 [3] - Arista's market sentiment has become particularly pessimistic, but opportunities may become clearer following the release of Q1 earnings and the initiation of first deployments, potentially reversing the negative outlook [3] Group 2: Motorola Solutions - Motorola Solutions (MSI) has seen a 20% decline in stock price this year, attributed to concerns over a government shutdown, which lasted 43 days [4] - Morgan Stanley upgraded Motorola's rating from "hold" to "overweight," despite a slight target price decrease from $471 to $436, viewing the sell-off as excessive and identifying an attractive entry point [4] Group 3: Other Companies in Optical Devices - Morgan Stanley expects Corning (GLW.US), Ciena (CIEN.US), Lumentum Holdings (LITE.US), and Coherent (COHR.US) to outperform the market in 2026, driven by investments in lasers and optical devices [5] - Target prices for these companies have been adjusted: Corning from $82 to $98, Ciena from $195 to $213, Lumentum from $190 to $304, and Coherent from $150 to $180 [6]

Group 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]