Arista Networks NYSE:ANET, Seagate Technology and Astera Labs emerged as BNP Paribas' top AI supply-chain ideas as the bank stayed bullish on compute, networking and storage demand into 2027.
Analyst Karl Ackerman said the next major demand catalyst may not arrive for another quarter, but he still favors companies exposed to agentic AI CPUs, custom processors, 200G networking chips and 1.6T optical transceivers. BNP raised AMD's NASDAQ:AMD price target to $600 from $460 and Astera Labs' target to $475 from $260.
Arista builds high-speed networking switches, Seagate makes data-storage products, and Astera Labs supplies connectivity chips used inside AI servers and data centers.
BNP expects data-center switch sales to grow at a 44% compound annual rate, reaching $114.7 billion by 2028 from $26.9 billion in 2024. Backend switching could expand nearly 8-fold to $78.6 billion, while optical transceiver sales may reach $53.1 billion.