Goldman Sachs Predicts $100 Billion AI Data Center Switching Market

Goldman Sachs has updated its network equipment industry model, raising forecasts for the AI data center switching market. The market is expected to reach $100 billion by 2030, with a compound annual growth rate (CAGR) of 65% from 2025 to 2030.

The increasing complexity of AI data center construction requires stronger networking capabilities to support high-performance, low-latency data flows. This demand is driving growth in the market, which is expected to be led by hyperscalers and secondary clouds.

Arista Networks (ANET) and Celestica (CLS) are benefiting from this trend and have been rated as Buy by Goldman Sachs. ANET's Q3 earnings are expected to beat estimates across the board, supported by improving supply conditions.