Arista Networks, Inc. Aktie News

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Since achieving an all-time high closing price of nearly $130 on Jan. 21. Arista Networks NYSE: ANET has been a big disappointment to shareholders.

The artificial intelligence (AI) trade has continued to thrive on Wall Street despite global trade tensions. In the first quarter, these billionaire hedge fund managers sold Nvidia (NVDA 2.92%) and bought Arista Networks (ANET 5.29%), a stock that split in December and has returned 530% in the last five years:

Arista Networks is a fundamentally strong, debt-free company, with high margins and ROIC, justifying my strong buy rating. The current valuation is fair after the recent price drop, offering an attractive entry point for long-term investors. Despite conservative EPS growth forecasts, I believe Arista will continue to outperform, due to its AI exposure and key partnerships.

ANET's networking investment thesis remains robust, as observed in the growing contract wins across the federal/ enterprise sector and the higher multi-year backlogs. The same has been observed in the management's promising FQ2'25 guidance and the richer cash flow story, underscoring their ability to monetize the ongoing AI/ data center boom. Combined with the richer balance sheet and the cance...

Arista stock fell amid Nvidia's disclosure that it has nabbed Meta Platforms and Google as new customers for Ethernet networking gear in data centers.

Hyperscaler capital spending remains robust, supporting Arista's durable growth, as AI infrastructure investments accelerate through 2025 and beyond. Rumors suggest that Arista may benefit from the large investments in Project Stargate, through its relationships with Microsoft & Oracle. Risks include potential capacity constraints and rack-scale solutions by major chipmakers.