The AI infrastructure market is rapidly expanding, projected to grow from an estimated $72.2 billion in 2025 to $518.26 billion by 2035, with a compound annual growth rate (CAGR) of 21.82%. Key players in this space include Arista Networks, Inc. (ANET), known for high-bandwidth Ethernet switches and routing platforms, and Celestica, Inc. (CLS), which offers a broader range of design and manufacturing services for AI infrastructure. Arista has more than 100 customers for its Etherlink AI-fabric, up from just 4-5 in 2024, while Celestica is seeing significant revenue growth driven by its 800G Ethernet switches and partnerships with major companies like OpenAI.
In Q2, Celestica reported a 62% increase in Communications revenues, primarily due to its 800G switch programs, while its Enterprise revenues surged 167%. The company anticipates mass production of its 1.6T networking programs in 2026. Meanwhile, Arista is challenged by competitors like Cisco Systems, Inc. (CSCO), which has $9.3 billion in AI infrastructure-related orders, and Hewlett Packard Enterprise (HPE), which is expanding its AI and networking services.
Over the past year, Celestica’s stock has risen 72.6%, outperforming Arista’s 54.2% increase. Zacks estimates show Celestica expects year-over-year sales growth of 64.27% and earnings per share (EPS) growth of 78.51%, while Arista forecasts growth of 37.66% in sales and 35.57% in EPS for 2026. As Celestica diversifies its portfolio and strengthens partnerships, it appears better positioned to capitalize on the burgeoning AI infrastructure market.
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