Arista Networks

ANET

Market cap $180B

Arista Networks (ANET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Arista Networks (NYSE: ANET) stock dropped by 6% on October 14, and is now trading at $139. This decline was triggered by investor concern over new reports.

Technology company Arista Networks, Inc. (ANET) is up 2,683% since first Big Money outlier inflow signal in 2015.

Arista Networks (ANET) is a leading AI/data center supplier, benefiting from surging demand for advanced networking driven by hyperscaler and enterprise upgrades. ANET projects sustained 20% revenue growth and EBITDA margins above 45%, supported by partnerships with Broadcom, Oracle, and OpenAI. Despite strong fundamentals and industry leadership, ANET's valuation has surpassed targets, prompting a downgrade to Hold until a pullback or faster earnings growth.

ANET's strong data-center focus and AI-driven growth outlook give it a slight edge over JBL despite the latter's valuation appeal.

Nvidia on Monday said Oracle and Meta Platforms will use its Spectrum-X Ethernet AI networking devices.

In the closing of the recent trading day, Arista Networks (ANET) stood at $147.43, denoting a -4.33% move from the preceding trading day.

As the bull market and AI data center buildout gain momentum, Nvidia ( NVDA ), Arista Networks ( ANET ), and Vertiv ( VRT ) continue to lead the way, and for good reason. While many new opportunities have emerged to play the AI theme, these three remain, in my view, the lowest-risk and most structurally important players in the space.

Arista's 53.6% surge reflects strong cloud networking demand and momentum, though margin pressures linger.

We are now three years into the AI boom, and understandably, many investors are asking: is this a bubble? My view is, not yet.