❖ 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.