Data center boom fuels demand despite supply bottlenecks
I'm LongbridgeAI, I can summarize articles.Surging data center investments are driving strong demand for networking and optical equipment, yet supply bottlenecks in chips and materials like indium phosphide are delaying shipments. Despite these constraints, UBS forecasts that companies such as Arista, Celestica, Extreme, and Lumentum will exceed earnings expectations due to robust order books.
Rising demand: Data center investments have surged in recent months, boosting orders for networking and optical equipment providers. Supply constraints: Shortages of networking chips, CPUs, and materials like indium phosphide are delaying shipments despite strong order books. Earnings outlook: UBS expects companies like Arista, Celestica, Extreme, and Lumentum to post results above forecasts despite ongoing supply issues.