❖ CITI'S AI INFRASTRUCTURE PICKS FOR 2025: ❖ Top Picks: Apple ( $AAPL), Ciena ( $CIEN), Coherent ( $COHR) for AI infrastructure. ❖ Networking Over Hardware: Networking stocks have outpaced semiconductors/hardware by 24%/27% YTD due to AI. ❖ Investment Cycle: Anticipates multi-year growth in AI networking solutions. ❖ ASIC and Optical Benefits: Expects increased demand for ASICs, enhancing server and data center connectivity; optical tech to gain from AI's demands for density and speed. ❖ Arista Networks ( $ANET): Despite strong performance, downgraded due to valuation and focus on later AI stages. ❖ Risks: Potential China tariffs could impact gross margins and contribute to consumer inflation in 2025.

#Downgrades - Oct 18, 2024 $BSIG: Morgan Stanley Downgrades to Underweight from Equalweight - PT $26 (from $23) $BSX: Needham Downgrades to Hold from Buy $COHR: B.Riley Downgrades to Neutral from Buy - PT $86 $GLBE: Morgan Stanley Downgrades to Equalweight from Overweight - PT $40 $KMT: BofA Securities Downgrades to Underperform from Neutral - PT $26 $LILM: Cantor Fitzgerald Downgrades to Neutral from Overweight - PT $1 (from $2) $NFLX: Phillip Securities Downgrades to Neutral from Buy - PT $695 $ODFL: BMO Capital Downgrades to Market Perform from Outperform - PT $210 (from $214) $RCL: CFRA Downgrades to Hold from Buy - PT $200 $TCBI: Piper Sandler Downgrades to Neutral from Overweight - PT $82 (from $75) $TMUS: Scotiabank Downgrades to Sector Perform from Outperform - PT $236 (from $215.50) $USAP: KeyBanc Downgrades to Sector Weight from Overweight $ZETA: Barclays Downgrades to Equalweight from Overweight - PT $28