ANCHOR REPORT Global Markets Research 9 January 2026 Global AI networking supercycle driven by tech upgrade/supply shortage Accumulate market leaders InnoLight, YOFC, TFC and T&S We believe the global AI networking supercycle will continue in 2026F, and even extend into 2027F, driven by multiple technology upgrade roadmaps (i.e. Silicon Photonics [SiPh], Co-package optics [CPO], Optical Circuit Switch [OCS], Active Electronic Cable [AEC], Hollow Core Fiber [HCF]) and supply shortage (i.e. optical laser chip ...

Core Insights - Arista Networks (NASDAQ: ANET) demonstrated strong performance in Q2, but management provided conservative guidance for CY25, indicating a cautious outlook despite positive results [1] Company Analysis - Arista Networks is positioned in the AI networking sector, which is experiencing growth, particularly in areas such as semiconductors, artificial intelligence, and cloud software [1] - The management's conservative guidance may reflect broader market uncertainties or strategic positioning for future growth [1] Analyst Background - The analyst, Uttam, has extensive experience in the technology sector, having worked with major firms like Apple and Google, and focuses on various high-growth areas including MedTech, Defense Tech, and Renewable Energy [1]