Arista Networks generates lucrative profit margins.Investors are concerned about Nvidia (NVDA 0.64%) expanding its services and how it will compete against Arista Networks (ANET +1.78%).*Stock prices used were the afternoon prices of Dec. 8, 2025. The video was published on Dec. 10, 2025. ...

Key Takeaways IBM is gaining from strong hybrid cloud and AI demand, boosted by its Red Hat and HashiCorp offerings.ANET leads in high-performance Ethernet switches and cloud-native solutions but faces margin pressure.IBM trades at a lower forward P/E of 25.5 vs. ANET's 39.67, giving it an edge on valuation for 2026.Arista Networks, Inc. (ANET) and International Business Machines Corporation (IBM) are leading players in the enterprise and data-center networking space, focusing on infrastructure vital to clo ...

Brown Brothers Harriman, an investment management company, released its Q3 2025 investor letter for the BBH Select Series - Mid Cap Fund. A copy of the same can be downloaded here. In the quarter, the fund decreased by -0.9% on a total return basis compared to the Russell Midcap Index’s 5.3% return. The Fund has decreased by a total return of -1.8%, YTD, compared to 10.4% for the Index. The third quarter experienced a boost in the low-quality rally that started late last year and gained momentum throughout ...

PresentationSimon LeopoldRaymond James & Associates, Inc., Research Division Okay, folks, thank you very much for joining us. This is Simon Leopold, Raymond James, semiconductor and data infrastructure analyst. Day 2 of our TMT+C Conference here in New York. Very pleased to have the team from Arista Networks with us for a fireside. We have with us Chantelle Breithaupt, SVP and CFO. We have Ashwin Kohli, who is the Chief Customer Officer and Rod Hall, who is supporting the IR team in comms. Is it the right ...

Arista Networks Inc. (NYSE:ANET) is one of the Good Stocks to Buy According to Analysts. on December 3, UBS reiterated a Buy rating on Arista Networks Inc (NYSE:ANET) with a $155 price target. However, earlier on November 24, Michael Genovese from Rosenblatt Securities reiterated a Hold rating on the stock with a price target of $140. This mixed sentiment is due to a 16% drop in share price since the company released its fiscal Q3 2025 results on November 4. The investor sentiment is falling despite the e ...

Summary of Arista Networks Conference Call (December 09, 2025) Company Overview - **Company**: Arista Networks (NYSE: ANET) - **Industry**: Networking and Data Infrastructure - **Growth**: Expected to reach $10 billion in revenue with a 20% growth estimate for the upcoming year [8][9][13] Key Points Market Opportunity - **Total Addressable Market (TAM)**: Increased from $70 billion to $105 billion year-over-year, encompassing AI, data centers, cloud, enterprise, and campus networking [9][11] - **Market Leadership**: Arista is a market share leader in front-end data center networking and is the only vendor outside of China with significant AI networking capabilities [11][12] Customer Concentration and Diversification - **Customer Base**: Historically, 40% of revenue came from two customers; however, Arista aims to diversify its revenue streams as it approaches the $10 billion mark [12][13] - **Enterprise Growth**: Targeting $800 million in revenue from the enterprise segment in 2025, increasing to $1.25 billion in 2026, representing only 5% market share [13][14] AI Market Dynamics - **AI Spending**: Estimated $2.3 trillion in AI-related spending from 2022 to 2035, with significant opportunities in agentic AI and autonomous robotics [15][16] - **Demand Drivers**: Industries such as education, finance, and healthcare are increasingly adopting AI, leading to a surge in data demand [18][20] Customer Segmentation - **NeoCloud and Sovereign Customers**: NeoCloud customers appreciate Arista's hyperscaler experience, while sovereign customers face longer decision-making cycles due to organizational complexities [22][50] - **Enterprise Adoption**: Enterprises are shifting from cloud-based AI training to on-premise solutions, indicating a trend towards localized data processing [24][27] Technology and Product Strategy - **Scale-Up Opportunities**: Arista is exploring scale-up architectures, which are not currently included in the TAM but are expected to be significant as the market matures [55][56] - **Campus Networking**: Arista plans to leverage its existing portfolio and go-to-market strategy to capture a larger share of the campus networking market, which has a refresh cycle of five to nine years [61][62] Channel Strategy - **Channel Engagement**: Arista is enhancing its channel strategy, focusing on a mix of channel-led and channel-fulfilled approaches to improve market penetration [66][69] Future Outlook - **Growth Indicators**: Key indicators for future growth include guidance, deferred revenue growth, and purchase commitments, with optimism for the next five to ten years [71] Additional Insights - **Customer Decision-Making**: The ownership of AI initiatives within enterprises can influence whether they opt for on-premise or cloud solutions, highlighting the importance of understanding customer dynamics [30][31] - **Blurring of Front-End and Back-End**: The distinction between front-end and back-end networking solutions is becoming less clear as customers seek flexible, integrated solutions [34][36] This summary encapsulates the essential insights from the Arista Networks conference call, highlighting the company's strategic direction, market opportunities, and evolving customer dynamics in the networking industry.

Hardware & Networking AI Demand Expanding Outside the DC with Scale- Across and Multi-Rail Opportunities; Estimate $10 bn+ TAM J P M O R G A N North America Equity Research 05 December 2025 The advent of AI data centers and large training clusters has introduced new terminology around the AI networking fabric, including "Scale-Up," which generally refers to XPU-to-XPU connectivity within a tightly coupled node or local cluster, and "Scale-Out," which refers to the fabric that links many of these nodes acros ...

Arista Networks Inc (NYSE:ANET) is one of the AI Stocks Analysts are Tracking Closely. On December 3, UBS analyst David Vogt reiterated a Buy rating on the stock with a $155.00 price target. The firm holds a positive stance on ANET, supported by a robust outlook and minimal near-term risks. According to the firm, Arista typically does not provide guidance “assuming everything hits at 100%.” Rather, it maintains visibility for two quarters that supports its initial guidance and revisions that occur as the ...

A month has gone by since the last earnings report for Arista Networks (ANET) . Shares have lost about 9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Arista Networks due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Arista Networks, Inc. before we dive into how investors and analysts have reacted as of late.Arista Q3 Earnings ...

Core Insights - Earnings estimates for Arista Networks, Inc. (ANET) for 2025 and 2026 have increased by 17.8% to $2.84 and 16.4% to $3.27 respectively, indicating bullish sentiment regarding the stock's growth potential [1][5] Demand and Product Offering - Arista offers a comprehensive range of data center and campus Ethernet switches and routers, featuring industry-leading capacity, low latency, port density, and power efficiency [3] - The company is a leader in 100-gigabit Ethernet switches and is gaining traction in 200- and 400-gigabit high-performance switching products [3] Revenue Growth and Market Position - Solid demand trends among enterprise customers are supported by Arista's multi-domain modern software approach, which utilizes a unified software stack across various use cases [4] - The expanding cloud networking market, driven by the demand for scalable infrastructure, positions Arista favorably for growth in the data-driven cloud networking business [6] Product Innovations - Arista has introduced several additions to its multi-cloud and cloud-native software product family, including cognitive Wi-Fi software that enhances application identification and troubleshooting [7] Stock Performance - Arista's stock has surged by 19.7% over the past year, outperforming the industry growth of 0.9% and peers like Hewlett Packard Enterprise Company (HPE) [8] Margin Challenges - Despite strong growth potential, Arista faces margin erosion due to high R&D costs and supply chain redesign, which impacts profitability [5][13] - Increased demand is met with supply bottlenecks for advanced products, affecting working capital as the company builds inventory [13] Future Outlook - With robust demand trends and a focus on quality and operational execution, Arista is poised for solid growth momentum [14] - However, high selling, general & administrative costs and elevated customer inventory levels continue to weigh on the bottom line [15]