From GPU to “shovel seller”: Deutsche Bank's first AI hardware segment, laser duo Lumentum (LITE.US) Coherent (COHR.US) won a “buy”

The Zhitong Finance App learned that Deutsche Bank recently officially covered the AI hardware sector and put forward a core proposition: In today's artificial intelligence era, what is really needed? The bank's analyst Gianmarco Conti stated in the report: “As digital residents in 2026, we are consuming huge amounts of data — we won't delete photos or videos from our devices, we won't reject new technology, let alone convenience. Whether presented in the form of chatbots, enterprise-grade intelligence clusters, or 'ambient programming' tools, AI is making our lives more convenient.”

Conti emphasized that this convenience directly translates into time savings and overall improvements in productivity in all areas of life. For investors in the technology sector, the market focus is gradually shifting from GPUs to structural opportunities for CPUs and other high-efficiency computing layers, which has spawned a series of “selling shovels” hardware investment targets.

Deutsche Bank's top five “buy” rated stocks with the highest confidence:

Lumentum Holdings (LITE.US) and Coherent (COHR.US) both received “buy” ratings. Conti pointed out that regardless of whether the AI architecture uses pluggable solutions or co-packaged optics (CPO) technology, its laser devices are essential core components. “Both companies are in a state where supply is limited, production capacity is sold out, and prices continue to rise. Nvidia (NVDA.US) has invested $2 billion each,” Conti emphasized.

Arista Networks (ANET.US) also received a “buy” rating. The bank believes that Arista's software premium still has a moat advantage in the field of enterprise-level and sovereign AI, and this is precisely its core sales market. The company is leading to 40% revenue growth while having strong free cash flow, and the current valuation does not fully reflect this outlook.

Cisco (CSCO.US) also received a “buy” rating. Conti said that Cisco integrates silicon wafers, optics and systems, and holds a $9.3 billion ultra-large-scale AI order, making it a low-risk choice to participate in AI transformation.

HPE (HPE.US) is the fifth largest individual stock with a “buy” rating.

Meanwhile, Deutsche Bank gave A10 Networks (ATEN.US), Dell Technologies (DELL.US), and Ingram Micro Holdings (INGM.US) a “neutral” rating.