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Can Arista's Latest XPO Optical Modules for AI Networks Drive Growth?
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Key Takeaways
Arista launches XPO liquid-cooled optical modules with 12.8 Tbps for AI networking and large data centers.
A single OCP rack can reach 204.8 Tbps front-panel capacity, four times higher than 1600G OSFP optics.
Arista's XPO uses liquid cooling up to 400W and supports diverse optical standards for better performance.
Arista Networks, Inc. (ANET - Free Report) has announced a multi-source agreement for XPO, a new liquid-cooled optical module designed to deliver extremely high bandwidth and density for AI networking and large-scale data centers. It is designed to handle the extreme performance and thermal demands of AI workloads, making pluggable optics more powerful and energy efficient.
Arista’s XPO modules deliver an impressive 12.8 Tbps each, allowing a single Open Compute Project (OCP) rack unit to reach a total front-panel capacity of 204.8 Tbps, four times higher than existing 1600G Octal Small Form-factor Pluggable (OSFP) optics. This helps data center operators to increase network capacity and support higher traffic volumes without expanding physical infrastructure.
The modules include a built-in cold plate that uses liquid cooling to handle up to 400 watts of power, keeping the modules cool during heavy use. It also supports major optical standards such as DR, FR, LR, SR and ZR/ZR+, as well as newer technologies like coherent-lite, slow & wide, copper and RF-microwave. The design is flexible and allows linear, half-retimed, or fully-retimed interfaces, which helps to improve performance and signal quality.
With the introduction of XPO, Arista aims to strengthen its leadership in high-performance networking solutions for AI-driven data centers. The company continues to focus on innovation, scalability, and energy-saving technologies to meet the growing global demand for faster and more reliable network infrastructure.
How Are Competitors Faring?
Arista faces competition from Cisco Systems, Inc. (CSCO - Free Report) and NVIDIA Corporation (NVDA - Free Report) . Cisco has launched new high-speed AI networking products like the Silicon One G300 chip, Nexus 9000 switches and 8000 Series routers to support growing AI data-center workloads. The company is also developing AI-driven network management and security solutions while partnering with cloud and enterprise customers to expand AI infrastructure deployment.
NVIDIA is expanding its AI data-center networking by partnering with optical technology companies like Lumentum Holdings Inc. (LITE - Free Report) to build faster and more energy-efficient connections for large AI clusters. The company is also investing in AI infrastructure and working with cloud providers to increase high-performance networking capacity. NVIDIA also launched its new AI platform called Rubin, which includes advanced chips and networking solutions for next-generation AI data centers.
ANET’s Price Performance, Valuation & Estimates
Shares of Arista have gained 67.2% over the past year against the industry’s decline of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 14.4, above the industry average of 3.98.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 6.4% to $3.51 over the past 60 days, while the same for 2027 has also increased 5.1% to $4.13.
View the Zacks #1 Rank List
Image: Bigstock
Can Arista's Latest XPO Optical Modules for AI Networks Drive Growth?
Key Takeaways
Arista Networks, Inc. (ANET - Free Report) has announced a multi-source agreement for XPO, a new liquid-cooled optical module designed to deliver extremely high bandwidth and density for AI networking and large-scale data centers. It is designed to handle the extreme performance and thermal demands of AI workloads, making pluggable optics more powerful and energy efficient.
Arista’s XPO modules deliver an impressive 12.8 Tbps each, allowing a single Open Compute Project (OCP) rack unit to reach a total front-panel capacity of 204.8 Tbps, four times higher than existing 1600G Octal Small Form-factor Pluggable (OSFP) optics. This helps data center operators to increase network capacity and support higher traffic volumes without expanding physical infrastructure.
The modules include a built-in cold plate that uses liquid cooling to handle up to 400 watts of power, keeping the modules cool during heavy use. It also supports major optical standards such as DR, FR, LR, SR and ZR/ZR+, as well as newer technologies like coherent-lite, slow & wide, copper and RF-microwave. The design is flexible and allows linear, half-retimed, or fully-retimed interfaces, which helps to improve performance and signal quality.
With the introduction of XPO, Arista aims to strengthen its leadership in high-performance networking solutions for AI-driven data centers. The company continues to focus on innovation, scalability, and energy-saving technologies to meet the growing global demand for faster and more reliable network infrastructure.
How Are Competitors Faring?
Arista faces competition from Cisco Systems, Inc. (CSCO - Free Report) and NVIDIA Corporation (NVDA - Free Report) . Cisco has launched new high-speed AI networking products like the Silicon One G300 chip, Nexus 9000 switches and 8000 Series routers to support growing AI data-center workloads. The company is also developing AI-driven network management and security solutions while partnering with cloud and enterprise customers to expand AI infrastructure deployment.
NVIDIA is expanding its AI data-center networking by partnering with optical technology companies like Lumentum Holdings Inc. (LITE - Free Report) to build faster and more energy-efficient connections for large AI clusters. The company is also investing in AI infrastructure and working with cloud providers to increase high-performance networking capacity. NVIDIA also launched its new AI platform called Rubin, which includes advanced chips and networking solutions for next-generation AI data centers.
ANET’s Price Performance, Valuation & Estimates
Shares of Arista have gained 67.2% over the past year against the industry’s decline of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 14.4, above the industry average of 3.98.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 6.4% to $3.51 over the past 60 days, while the same for 2027 has also increased 5.1% to $4.13.
Image Source: Zacks Investment Research
Arista currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.