Latest news with #InfiniBand
Yahoo
5 days ago
- Business
- Yahoo
Arista, Cisco Poised to Dominate AI Switch Market
Arista Networks (NYSE:ANET) and Cisco Systems (NASDAQ:CSCO) stand to gain most from the $29 billion AI switch market by 2029, Evercore ISI says. Warning! GuruFocus has detected 2 Warning Sign with ANET. Back-end network switching for AI is set to grow from $6.3 billion in 2024 to $29 billion by 2029, with hyperscalers driving $17.6 billion of that demand. Evercore's Amit Daryanani estimates Arista could add $7 billion in revenue and over $2.00 in EPS by hitting market-share targetsroughly matching its 2024 run ratewhile Cisco could tack on $3.5 billion in revenue and $0.25 in EPS. Ethernet is forecast to capture the lion's share of growth, potentially up to 90%, as AI clusters at Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) scale out. Daryanani notes that traditional data-center switches won't cut it for AI workloads, and that large enterprises will lean on model-as-a-service rather than build full clusters in-house. He also flags upside for Celestica (NYSE:CLS) and NVIDIA (NASDAQ:NVDA) in supporting components and InfiniBand alternatives. Investors should care because Arista's and Cisco's AI-centric networking strength could drive outsized revenue and profit growth well beyond the broader IT spending cycle. This article first appeared on GuruFocus.
Yahoo
15-05-2025
- Business
- Yahoo
1 Stock-Split AI Stock Up 2,330% Since 2015 to Buy Now, According to Wall Street
Arista shares have declined 12% since announcing a 4-for-1 stock split in November, but stocks have returned an average of 25% during the year following such announcements. The company is the market leader in high-speed Ethernet switches, and demand for its products should increase as more businesses build out artificial intelligence (AI) infrastructure. Wall Street expects Arista's earnings to increase at 16% annually through 2028, but the company has consistently beat the consensus estimate in recent quarters. 10 stocks we like better than Arista Networks › Arista Networks (NYSE: ANET) stock has soared 2,330% since January 2015. But shares have declined 12% since the company announced a 4-for-1 stock split on Nov. 7. Investors have two reasons to think the price is headed higher in the coming months. First, since 1980, companies have seen their share prices increase by an average of 25% during the year after a stock split announcement, according to Bank of America. Second, Wall Street anticipates healthy returns for Arista shareholders during the next year. The average 12-month target price is $108 per share, which implies 13% upside from its current share price of $95. Here's what investors should know about this artificial intelligence (AI) stock. Arista specializes in high-performance networking solutions for enterprise campus and cloud data centers. The company complements its hardware portfolio, including switches and routers, with adjacent software for network automation, monitoring, and security. Research company Gartner recently recognized Arista as the technology leader in data center switches. The report highlighted its consistent innovation, product roadmap, and network management software as key strengths. Arista has differentiated itself with its Extensible Operating System (EOS). Whereas Cisco deploys multiple operating systems across different devices, making network management more complicated, Arista EOS runs across its entire product portfolio, letting customers deploy a seamless network that spans public, private, and hybrid clouds. Importantly, Arista dominates the high-speed Ethernet switch market, meaning switches that transfer data at 100-plus gigabits per second. The company captured about 43% market share last year, three times more than its closest competitor Cisco. Leadership in that segment means Arista is well positioned to benefit as AI creates demand for faster networking solutions. A data center network has two distinct components: the front end and back end. The front end of a network moves traffic between endpoint (user-facing) devices and servers, while the back end of a network moves traffic between servers. At present, Ethernet is the industry standard in front-end networking for AI workloads, while InfiniBand is the industry standard in back-end networking for AI workloads. However, Arista expects Ethernet switches to become an increasingly popular choice for back-end networks in the coming years. "We naturally see the deployment of more back-end clusters resulting in more uniform compute, storage, and memory," CEO Jayshree Ullal told analysts last year. That puts Arista in front of a large market opportunity. Bloomberg estimates AI-related Ethernet switch sales for front-end and back-end networks will grow at 41% annually and 51% annually, respectively, through 2028. In that scenario, cumulative spending in those areas would exceed $9 billion in three years. Comparatively, Arista estimates AI sales will total $1.5 billion in 2025. That figure could double or even triple by 2028 because the company dominates the Ethernet switch space. Wall Street estimates Arista's earnings will increase at 16% annually through 2028. That makes the current valuation of 38 times earnings look somewhat expensive. However, analysts have consistently underestimated the company. Arista topped the consensus earnings estimate by an average of 14% in the last six quarters. And that trend may continue as demand for AI networking increases. Importantly, Arista stock closed near $108 per share on Nov. 7, the day the company announced its 4-for-1 stock split. History says the share price will advance 25% to $135 during the subsequent year, which implies 42% upside from its current share price of $95. But that may be unrealistic, given the economic uncertainty created by President Trump's tariffs. However, patient investors should consider buying a small position in this AI stock today. Before you buy stock in Arista Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arista Networks wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Bank of America is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Arista Networks. The Motley Fool has positions in and recommends Arista Networks, Bank of America, and Cisco Systems. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy. 1 Stock-Split AI Stock Up 2,330% Since 2015 to Buy Now, According to Wall Street was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Nvidia stock soars on US-Saudi AI deal backed by Trump, bin Salman
Nvidia's shares surged 5.6% on Tuesday, boosted by a tens-of-billions-of-dollars artificial intelligence (AI) investment plan agreed between the US and Saudi Arabia. However, the AI powerhouse's stock remains down 4.5% year-to-date as of market close on 13 May, facing challenges stemming from US-China trade tensions and the launch of China's DeepSeek, a lower-cost AI model. CEO Jensen Huang was among the US tech leaders—alongside Tesla's Elon Musk, OpenAI's Sam Altman, AMD's Lisa Su, Palantir's Alex Karp, and other executives—who accompanied President Trump on his visit to Saudi Arabia. At the investment conference, the White House announced a $600 billion investment pledge by the Middle Eastern kingdom into the US, including a nearly $142 billion defence sales deal, an $80 billion commitment into 'cutting-edge transformative technologies' in both countries, and other agreements across energy, aerospace, and sports sectors. Trump also vowed to lift all sanctions against Syria during his visit, a political gesture to warm the relationship with key Middle East countries. He is also going to meet leaders of Qatar and the United Arab Emirates (UAE) later this week. Nvidia announced it will partner with HUMAIN, a subsidiary of Saudi Arabia's Public Investment Fund focused on AI, to transform the Kingdom of Saudi Arabia (KSA) into 'a global powerhouse in AI, cloud and enterprise computing, digital twins and robotics.' Nvidia will supply its most advanced AI chips over the next five years, including 18,000 units of the GB200 Grace Blackwell AI supercomputer with its InfiniBand networking in the initial phase. The purchase forms part of a broader project for HUMAIN to build AI factories in the kingdom, with a projected capacity of up to 500 megawatts. The announcement also includes a deal with the Saudi Data & AI Authority (SDAIA), which will 'deploy up to 5,000 Blackwell GPUs for a sovereign AI factory and enable smart city solutions.' Aramco Digital, the technology arm of oil giant Saudi Aramco, will also collaborate with Nvidia to develop AI infrastructure in the country. Saudi Arabia, an oil-rich nation, is seeking to diversify its economy, which still relies heavily on crude exports. The kingdom aims to attract $100 billion in foreign direct investment annually, as outlined under its Vision 2030 strategy. According to a Bloomberg report, the Trump administration is also considering a deal with the UAE, which would permit the import of over one million advanced Nvidia chips—well above the export limits imposed under the Biden administration. Other major US tech firms, including AMD, Global AI, Amazon, Cisco, and OpenAI, also announced AI investment plans in Saudi Arabia during the event. Trump's Middle East trip is shaping up to be a major win for US AI chipmakers, as the president looks to ease export curbs to China. On the same day, the US Department of Commerce (DOC) announced that it is rescinding the AI diffusion rule imposed during former President Joe Biden's administration, which had been due to take effect on 15 May. Biden's administration had implemented fresh restrictions on AI chip exports to China in January, its final month in office, expanding controls to much of the world, amid concerns that China was accessing US AI chips via third countries. Both Saudi Arabia and the UAE had also been subject to those restrictions. 'The Trump administration will pursue a bold, inclusive strategy to advance American AI technology with trusted foreign partners, while keeping the technology out of the hands of our adversaries. At the same time, we reject the Biden administration's attempt to impose its own ill-conceived and counterproductive AI policies on the American people,' stated the DOC. The department added that the Bureau of Industry and Security (BIS) issued new guidance to strengthen controls over overseas exports of AI chips to limit China's access to advanced US technologies. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Al Etihad
14-05-2025
- Business
- Al Etihad
Trump's Middle East visit opens floodgate of AI deals led by Nvidia
14 May 2025 19:47 (BLOOMBERG)The Trump administration is clearing a path for Saudi Arabi and the UAE to pursue their artificial intelligence ambitions - and some of the biggest US tech companies are seizing on that opening with plans to spend billions of dollars in the agreements with the US expected to be unveiled in coming days, Saudi Arabia and the United Arab Emirates are poised to win wider access to advanced AI chips from Nvidia Corp. and Advanced Micro Devices Inc., which are considered the gold standard for running AI shares rose broadly in anticipation of eased restrictions on exports of advanced AI chips. Nvidia climbed 5.6% while AMD surged 4% on Tuesday, and both companies extended those gains in Wednesday of Super Micro Computer Inc. jumped nearly 20% after markets opened in New York on Wednesday before paring some deals are taking shape while President Donald Trump visits the Middle East seeking to forge deeper business ties that put US technology initiatives at center stage. Even before any formal announcement of agreements between the US and its partners, news began to emerge of American companies readying expanded projects in the the world's biggest semiconductor maker, will supply its most advanced artificial intelligence-related chips to Saudi Arabia's Humain, a company created to push that country's AI infrastructure efforts. Humain will get 'several hundred thousand' of Nvidia's most advanced processors over the next five years, starting with 18,000 of its cutting-edge GB300 Grace Blackwell products and its InfiniBand networking Nvidia's closest rival in AI accelerators, will provide chips and software for data centers "stretching from the Kingdom of Saudi Arabia to the United States" in a $10 billion project, Humain and AMD AI, a US tech venture, also plans to collaborate with Humain, in an agreement expected to be worth billions of dollars, according to a person familiar with the matter. Founded by US tech industry veterans, Global AI intends to build a data center in New York that will rely on chips developed by Nvidia, with plans for more Inc. And Humain said they would invest more than $5 billion to build an 'AI zone' in Saudi Arabia. Among other projects, Humain will use technologies from the Amazon Web Services cloud unit to develop a marketplace of AI agents for use by Saudi Arabia's government. AWS announced last year that it would open a cluster of data centers in Saudi Arabia, part of a $5.3 billion investment in the Systems Inc., the world's largest provider of networking gear, is working with Humain as well. The company said it would combine its 'global expertise with the kingdom's bold AI ambitions' to build infrastructure. It also extended a partnership with Abu Dhabi AI firm Micro said Tuesday it had inked a $20 billion deal with Saudi data center company DataVolt for high-powered servers. Super Micro sells data center infrastructure which often contains Nvidia chips and also counts Elon Musk's xAI among its Arabian venture capital firm STV launched a $100 million artificial intelligence fund with backing from Alphabet Inc.'s Google. The investments will be focused on early-stage startups in the Middle East and North Africa and support the development of infrastructure, according to a statement. It didn't disclose the amount of capital put up by AI initiatives stood out in a flurry of investments unveiled on the first full day of Trump's visit to the region. In Riyadh, Saudi Arabia's capital, Trump was joined by Crown Prince Mohammed bin Salman in hailing closer commercial relations. The deals also have included expanded purchases of Boeing Co. passenger jets and a promise by the Kingdom to allow Elon Musk's Starlink service to be used in aviation and maritime shipping. To pave the way on artificial intelligence, the US moved formally Tuesday to rescind the so-called AI diffusion rule launched under President Joe Biden. The measure, which created three broad tiers of access for countries seeking AI chips, had faced intense opposition from companies like Nvidia and American allies over the constraints it placed on countries' chip purchases. Trump administration officials are now drafting their own approach that is expected to shift toward negotiating individual deals with countries. Trump's Middle East visit Continue full coverage
Mint
14-05-2025
- Business
- Mint
Donald Trump is in Saudi Arabia for his Gulf tour, and so are Elon Musk and Sam Altman. But, why?
United States President Donald Trump is in Saudi Arabia for his official Guld tour. Since landing he has announced a flurry of deals, including in the semiconductors and artificial intelligence space. Later this week, he is also expected to travel to the United Arab Emirates (UAE). But, sharing the stage with Donald Trump, were some other high profile faces. Tesla chief Elon Musk, OpenAI's Sam Altman, Nvidia's Jensen Huang, and Uber's CEO Dara Khosrowshahi among others. The Washington Post in its reports dubbed it the 'largest single assemblage of America's tech' since Donald Trump's own inauguration in January. Besides Musk, Altman, Huang and Khosrowshahi, the others who made it to the event were Amazon CEO Andy Jassy, AMD CEO Lisa Su, venture capital firm Andreessen Horowitz's general partner Ben Horowitz, Epic Games' CEO Tim Sweeney, Google's president and chief investment officer Ruth Porat, Palantir CEO Alex Karp, and Uber's former CEO and founder Travis Kalanick. The report further noted that there were some big names that did not make it. These include Amazon founder Jeff Bezos, Apple CEO Tim Cook, Google CEO Sundar Pichai, Intel's management, LinkedIn co-founder Reid Hoffman, Meta chief Mark Zuckerberg, and Microsoft CEO Satya Nadella or President Brad Smith, The event was promoted as 'the first US-Saudi investment summit', but featured tech industry representatives heavily, when compared to executives from finance, banking and other industries, the report noted. So, why were they in the Saudi capital of Riyadh? To solicit investment for their AI ambitions from the oil-rich kingdom, the report added. Saudi in turn is looking to diversify from oil into other fields. Under agreements with the US, Saudi Arabia and the UAE are poised to win wider access to advanced AI chips from Nvidia and Advanced Micro Devices (AMD) during Donald Trump's Middle-East visits. We list what is on the cards: Inc. and Humain said they would invest more than $5 billion to build an 'AI zone' in Saudi Arabia. AMD is set to provide chips and software for data centers 'stretching from the Kingdom of Saudi Arabia to the United States' in a $10 billion project, Humain and AMD said. Cisco Systems Inc., the world's largest provider of networking gear, is working with Humain to combine its 'global expertise with the kingdom's bold AI ambitions' to build infrastructure. It also extended a partnership with Abu Dhabi AI firm G42. Global AI, a US tech venture, also plans to collaborate with Humain, in an agreement expected to be worth billions of dollars, sources told Bloomberg. Nvidia, the world's biggest semiconductor maker, will supply 'several hundred thousand' of its most advancedd AI chips to Saudi Arabia's Humain over the next five years. This includes 18,000 of its cutting-edge GB300 Grace Blackwell products and its InfiniBand networking technology. The UAE could also get 5,00,000 advanced Nvidia chips each year from now till 2027, sources told Bloomberg. One-fifth would be set aside for G42, while the remainder would go to US companies building data centers in the Gulf nation, they added. OpenAI is considering building new data center capacity in the UAE, sources said. They added that the details are not final and could change. Elon Musk's space internet company Starlink has also signed a deal with Saudi Arabia, for service of the Kingdom's aviation and maritime shipping. Saudi Arabian venture capital firm STV launched a $100 million AI fund with backing from Alphabet Inc.'s Google, focused on early-stage startups in the Middle East and North Africa for infrastructure development, according to a statement. How much Google will contribute is not yet known. (With inputs from Bloomberg)
