Feedback on Our Networking & Optical Notes: Some Healthy Debate

Research evidence excerpt

Feedback on Our Networking & Optical Notes: Some Healthy Debate

Idea

June 22, 2026 04:24 AM GMT

Morgan Stanley & Co. LLCMTelecom & Networking Equipment | North America Meta A Marshall

Equity Analyst

Feedback on Our Networking & Meta.Marshall@morganstanley.comAntonio Jaramillo +1 212 761-0430

Research Associate

Antonio.Jaramillo@morganstanley.com +1 212 761-4438

Optical Notes: Some Healthy

Telecom & Networking Equipment

North America

Industry View In-LineDebate

Found healthy backing to our networking note highlighting

inference opportunity, particularly with ANET, a thesis we think

has more momentum. Optical, which lacks firm data points, has

had more recent debates, with clearest story remaining in GLW;

more powerful stories into FQ4 EPS around LITE/COHR.

Key Takeaways

Found the most support for our networking note, which points to continued

momentum with ANET / CSCO.

Optical conversations picking up given concerns around CPO/NPO timing, laser

competition, training vs. inference in scale-across.

Cleanest setup remains with GLW, LITE / COHR becoming more interesting into

earnings, still more risk off CIEN for now.

Focus turns to networking as optical has a few more debates. In general, we have

found that our networking conversations coming out of our note a couple of weeks

back were positive, pointing to more support for ANET / CSCO over the next month

into earnings. This is counter to our recent optical discussions, which have moved

from a demand-discovery conversation around incremental content (highlighted in

our Insight earlier this year) to a margin-durability debate as timing of incremental

content, capacity coming online and overall switches in capacity investments

between training and inference come to the forefront. More specifically, 1) the