Arista Networks Inc (NYSE:ANET) is one of the 15 best AI stocks to watch in December 2025. Arista Networks (ANET) Eyes Strong Future Growth With AI and Data-Center Expansion Carol Gauthier/Shutterstock.com On December 7, 2025, Rosenblatt Securities’ Michael Genovese reiterated a “Hold” rating on Arista Networks Inc. (NYSE:ANET) with a $140 price target. In the lead-up to this update, Arista Networks Inc (NYSE:ANET) has presented a strong growth narrative, driven by artificial intelligence and data-cent ...

Whales with a lot of money to spend have taken a noticeably bullish stance on Arista Networks.Looking at options history for Arista Networks (NYSE:ANET) we detected 14 trades.If we consider the specifics of each trade, it is accurate to state that 28% of the investors opened trades with bullish expectations and 14% with bearish.From the overall spotted trades, 6 are puts, for a total amount of $218,900 and 8, calls, for a total amount of $856,505.Predicted Price RangeAfter evaluating the trading volumes and ...

Key Takeaways ANET introduces VESPA to build large, reliable cloud-managed Wi-Fi networks with seamless campus roaming.VESPA supports over 500,000 devices and 30,000 access points using VXLAN and EVPN for massive mobility scale.ANET also upgrades AVA, using an LLM for deeper network insights, faster troubleshooting, and issue deduction.Arista Networks, Inc. (ANET) recently announced the introduction of a new technology that will help enterprises build large, reliable, cloud-managed Wi-Fi networks in univers ...

Core Insights - Arista Networks is generating lucrative profit margins, which is a point of interest for investors [1] - Investors are concerned about Nvidia's expansion of services and its competitive stance against Arista Networks [1] Company Analysis - Arista Networks (ANET) has shown a positive stock performance, increasing by 1.78% [1] - Nvidia (NVDA) is perceived as a potential competitor to Arista Networks, raising investor concerns regarding market dynamics [1] Market Dynamics - The competitive landscape is shifting as Nvidia expands its services, prompting scrutiny on how it will impact Arista Networks [1]

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 ...

Core Insights - The BBH Select Series - Mid Cap Fund experienced a total return decrease of -0.9% in Q3 2025, underperforming the Russell Midcap Index, which returned 5.3% during the same period [1] - Year-to-date, the Fund's total return is -1.8%, compared to a 10.4% return for the Index [1] - The third quarter saw a continuation of the low-quality rally that began late last year, gaining momentum throughout 2025 [1] Company Highlights - Arista Networks, Inc. (NYSE:ANET) is a key holding in the BBH Select Series - Mid Cap Fund, recognized for its development and distribution of data-driven, client-to-cloud networking solutions [2] - Over the last month, Arista Networks' stock returned -0.20%, but it has appreciated by 21.67% over the past 52 weeks, closing at $130.04 per share on December 09, 2025, with a market capitalization of $163.757 billion [2] - Arista Networks, Inc. was one of the largest positive contributors to the Fund's performance in Q3 2025 [3]

Group 1 - The event is the TMT+C Conference in New York, focusing on the semiconductor and data infrastructure sectors [1] - Arista Networks is represented by key executives including the SVP and CFO, Chief Customer Officer, and a member of the IR team [2]

Core Viewpoint - Arista Networks Inc. (NYSE:ANET) is experiencing mixed analyst sentiment, with UBS maintaining a Buy rating and a price target of $155, while Rosenblatt Securities has a Hold rating with a target of $140 [1][2]. Financial Performance - In fiscal Q3 2025, Arista Networks reported a revenue increase of 27.46% year-over-year, reaching $2.31 billion, which exceeded estimates by $41.76 million [3]. - The earnings per share (EPS) for Q3 was $0.75, surpassing consensus estimates by $0.04 [3]. - International revenue accounted for $468.3 million, representing over 20% of total quarterly revenue [3]. Future Guidance - Management has provided modest guidance for Q4, expecting revenue between $2.3 billion and $2.4 billion, which is below Wall Street's estimate of $3.3 billion [2]. - Analysts at UBS project a 20% growth for Arista Networks in fiscal 2026, which is considered reasonable given the company's recent growth rates of 27.75% over the past 12 months and a 24% compound annual growth rate (CAGR) over the last five years [4]. Market Sentiment - The stock has seen a 16% decline since the release of Q3 results, indicating a drop in investor sentiment despite the earnings beat [2].

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 ...