Goldman Sachs: Upgrades AI Switching Market Forecast, Rates ANET and CLS as Buy

According to Chaoxiang research, Goldman Sachs noted in its research report dated September 28, 2026 that the 650 Group has raised its 2030 forecast for the AI Ethernet data center switch market to approximately $100 billion, with a compound annual growth rate (CAGR) of 65% from 2025 to 2030. The AI server market is projected to reach $1.3 trillion by 2030, up approximately 4% from prior estimates. The traditional data center switch market forecast was revised upward by an average of 42% for the 2026–2030 period. Goldman Sachs forecasts Arista Networks (ANET) 3Q26 revenue of $3.48 billion and EPS of $1.11, both above market consensus; Celestica (CLS) 3Q26 revenue of $5.36 billion aligns with expectations, while EPS is revised down to $2.85 due to dilution from a $3 billion equity offering; F5 (FFIV) F4Q26 revenue of $894 million exceeds market consensus. Goldman Sachs believes AI network demand is being underestimated, with ANET and CLS identified as the primary beneficiaries. ANET retains a Buy rating with a $225 price target; CLS retains a Buy rating, with 2027 and 2028 EPS forecasts above market consensus; FFIV retains a Neutral rating with a $400 price target. Campus network expenditure forecasts were simultaneously adjusted upward, with WLAN and enterprise switching revised up by approximately 6% and 8%, respectively.