Arista Networks Inc: 2 directors

Two Directors at Arista Networks Inc sold/sold after exercising options 40,042 shares at between 290.045USD and 299.990USD. The significance rating of the trade was 75/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by a...

The Tech Infrastructure Quarterly Bible 4Q23

We publish today our comprehensive quarterly bible: 212 pages of detailed analyses on what happened in the last 3 months, and how we interpret it, in light of our current convictions. The first section acts as a PM summary, outlining our key findings, and latest thoughts on the semi cycle, in 6 slides:

Who will capture the value of Gen AI? The call center use case.

As the adoption of generative AI is gaining momentum, we do our best to keep track of how the market is forming, so we can build an educated understanding of how fast and how far the current build out can go. We took a first stab at implementations in call centers this week – we have a first idea of the value creation potential, and the most interesting finding so far, is that we don’t know yet who will capture the bulk of the value. The jury is still out, and it is far from given that model ow...

Bible 4Q23: Enterprise IT – Slowdown deepens, recovery pushed out, whi...

Bible 4Q23 – Hyperscale & Cloud : Capex outlooks raised across the boa...

Hyperscale capex outlooks were raised across the board, and now imply growth of 21% in 2024, within sight of the 25% growth we expect. Public cloud revenues were similarly strong, re-accelerating for the first time since the pandemic, to >20%, and set to accelerate further in 1Q24; we have long expected public cloud revenues to return to 20-30% p.a. growth. For more details, refer to the report linked below.

After the rally: how to play the AI bull case, how to play the AI safe...

Nvidia’s stock is up 57% year-to-date, what’s next? It is easy to claim (as we do) that Nvidia offers more upside if generative AI lives to its most optimistic promises. Though questions are 1) by how much? and 2) could AI deployments slow, and what happens in that case? 3) what about other names to play AI? We provide solid analytical work to help investors answer these questions in the piece we publish today.

Industrial and smartphone semi cycle, trailing-edge WFE declining, Cis...

As always, during earnings season, we start the week with a wrap-up of what happened in the previous week.

Arista 4Q23: On track for AI Ethernet inflection next year, but limite...

OpenAI now generates 100bn words per day. Our take.

Sam Altman said on Friday that OpenAI now generates 100bn words per day. How does that compare to our uniquely deep and robust model of AI infrastructure? How does that fit with the growth we model in our AI bull case?

We called last year for a reacceleration in cloud and 25% growth in ca...

Amazon and Meta reported yesterday, confirming our view on public cloud and cloud capex.

Microsoft & Google 4Q23: cloud capex shaping up in line with our thesi...

Microsoft & Google reported 4Q23 yesterday. Please view the note for our updated perspective on technology infrastructure spending.

Microsoft & Google 4Q23: Public cloud growth is re-accelerating, in li...

Microsoft & Google reported 4Q23 yesterday. Please view the note for our updated perspective on public cloud spending.

$400bn spent on datacenter AI chips in 2027? Part II: Implications for...

Arista pre-4Q23 Model Update

$400bn spent on datacenter AI chips in 2027? Part I: Is it possible? T...

Lisa Su, CEO of AMD, pitched late last year a target addressable market for datacenter AI chips of $400bn. Lisa is to be taken seriously; this forecast might eventually prove wrong, but it was certainly not pulled out of a hat. In the first part of this series, we do our best to make sense of this number. We answer the fundamental question: what would a world in which $400bn are spent on datacenter AI chips look like? We have developed last year a deep expertise on the architecture, cost to buil...

The Tech Infrastructure Quarterly Bible 3Q23

We publish this morning our comprehensive quarterly bible: 218 pages of detailed analyses on what happened in the last 3 months, and how we interpret it, in light of our current convictions. The first section acts as a PM summary, outlining our key findings, and latest thoughts on the semi cycle, in 6 slides.