[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Jukan [@Jukanlosreve](/creator/twitter/Jukanlosreve) on x 22.7K followers Created: 2025-06-09 14:04:57 UTC Arista Networks: Architectural Debate Unresolved, 2H AI Networking Revenue Will Act as a Stock Catalyst Morgan Stanley (M. Marshall, 25/06/09) Despite intense discussions in the first half regarding the adaptability of backend AI network architectures, Morgan Stanley believes these concerns have been overly magnified, and the opportunity in Ethernet-based AI will be strongly validated in the second half. • 2H Backend Networking Revenue Is a Key Catalyst Morgan Stanley expects the “Demystifying AI” technology briefing on June XX to mainly focus on architectural details with limited stock impact; the true catalyst is the actual backend network revenue performance in the second half, driven by increased Blackwell deployment. If growth exceeds expectations, sentiment could quickly shift towards a bullish scenario. • Base-case Valuation Suggests Market Expectations Can Be Surpassed Under conservative assumptions, Morgan Stanley estimates that in 2025, Arista’s frontend, backend, and campus networking businesses will each generate approximately $XXX million, totaling $XXXX billion. This maps to approximately $X EPS in 2026, surpassing market EPS forecasts for 2025/2026, reflecting the feasibility of outperformance. • Architectural Debate Has Been Overemphasized Morgan Stanley argues the market’s skepticism about Arista’s backend networking share ignores the sustained growth and architectural advantages of its frontend business. Even if backend share is only half that of frontend, Arista could still meet or slightly exceed market revenue and earnings expectations. Thus, short-term concerns around technological adaptability are not decisive. • Risks and Considerations Morgan Stanley cautions that an unexpected slowdown in cloud capital expenditures could disrupt revenue momentum. Investors should closely monitor market feedback following the AI briefing and the realization of backend revenue in the second half, to assess whether to further increase positions or guard against cyclical risks. $ANET XXXXX engagements  **Related Topics** [coins ai](/topic/coins-ai) [networks](/topic/networks) [$anet](/topic/$anet) [stocks technology](/topic/stocks-technology) [morgan stanley](/topic/morgan-stanley) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/Jukanlosreve/status/1932076453639884868)
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Jukan @Jukanlosreve on x 22.7K followers
Created: 2025-06-09 14:04:57 UTC
Arista Networks: Architectural Debate Unresolved, 2H AI Networking Revenue Will Act as a Stock Catalyst Morgan Stanley (M. Marshall, 25/06/09)
Despite intense discussions in the first half regarding the adaptability of backend AI network architectures, Morgan Stanley believes these concerns have been overly magnified, and the opportunity in Ethernet-based AI will be strongly validated in the second half.
• 2H Backend Networking Revenue Is a Key Catalyst Morgan Stanley expects the “Demystifying AI” technology briefing on June XX to mainly focus on architectural details with limited stock impact; the true catalyst is the actual backend network revenue performance in the second half, driven by increased Blackwell deployment. If growth exceeds expectations, sentiment could quickly shift towards a bullish scenario.
• Base-case Valuation Suggests Market Expectations Can Be Surpassed Under conservative assumptions, Morgan Stanley estimates that in 2025, Arista’s frontend, backend, and campus networking businesses will each generate approximately $XXX million, totaling $XXXX billion. This maps to approximately $X EPS in 2026, surpassing market EPS forecasts for 2025/2026, reflecting the feasibility of outperformance.
• Architectural Debate Has Been Overemphasized Morgan Stanley argues the market’s skepticism about Arista’s backend networking share ignores the sustained growth and architectural advantages of its frontend business. Even if backend share is only half that of frontend, Arista could still meet or slightly exceed market revenue and earnings expectations. Thus, short-term concerns around technological adaptability are not decisive.
• Risks and Considerations Morgan Stanley cautions that an unexpected slowdown in cloud capital expenditures could disrupt revenue momentum. Investors should closely monitor market feedback following the AI briefing and the realization of backend revenue in the second half, to assess whether to further increase positions or guard against cyclical risks.
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