Group 1: Broadcom - Broadcom is a semiconductor and software company with an 80% revenue share in Ethernet switching and routing chipsets, which are crucial for data center operations [4] - The market for Ethernet chipsets is projected to grow at a rate of 30% annually as enterprises invest in AI infrastructure [4] - Broadcom holds a 60% market share in high-end ASICs, which are essential for accelerating AI workloads [5] - Revenue from three unnamed hyperscalers could reach between $60 billion and $90 billion by 2027, up from $12.2 billion in 2024, indicating a potential annual growth of 70% to 95% [6] - Broadcom's adjusted earnings are expected to grow at 22% annually through 2027, making its current valuation of 47 times adjusted earnings appear reasonable [7] Group 2: Arista Networks - Arista Networks specializes in high-speed Ethernet switches and is the revenue leader in switches of 100 gigabits per second and faster, essential for AI workloads [8] - Arista has three times more market share in high-speed Ethernet switches compared to Cisco Systems, attributed to its single operating system, EOS [9] - The total addressable market for Arista is expected to grow at 14% annually through 2028, driven by investments in AI infrastructure from hyperscalers and modernization efforts from smaller enterprises [10] - Wall Street anticipates Arista's adjusted earnings to increase at 17% annually through 2027, although its current valuation of 53 times adjusted earnings may seem high [11] - Arista has consistently beaten consensus estimates, with reported earnings averaging 14% above expectations in the last six quarters [12]

Core Viewpoint - Arista Networks (ANET) has shown strong stock performance recently, outperforming the S&P 500 and the Zacks Communication - Components industry, raising questions about its future stock trajectory [2]. Earnings Estimate Revisions - The consensus earnings estimate for Arista Networks is $0.57 per share for the current quarter, reflecting a year-over-year increase of +9.6% [5]. - For the current fiscal year, the consensus earnings estimate stands at $2.20, indicating a +26.4% change from the previous year [5]. - The next fiscal year's consensus earnings estimate is $2.41, suggesting a +9.9% increase compared to the prior year [6]. - The Zacks Rank for Arista Networks is 2 (Buy), indicating a positive outlook based on earnings estimate revisions [7]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $1.89 billion, representing a year-over-year growth of +22.4% [9]. - For the current fiscal year, the revenue estimate is $6.96 billion, indicating an +18.7% change, while the next fiscal year's estimate is $8.15 billion, reflecting a +17.1% change [9]. Last Reported Results and Surprise History - In the last reported quarter, Arista Networks generated revenues of $1.81 billion, a +20% increase year-over-year [10]. - The reported EPS was $0.60, up from $0.46 a year ago, with a revenue surprise of +3.15% and an EPS surprise of +14.83% [11]. Valuation - Arista Networks is graded F in terms of valuation, indicating it is trading at a premium compared to its peers [15].

Back in October, we posed a simple question about the artificial intelligence (AI) boom; who keeps the lights on? New year, same question. Utility stocks like Vistra (VST) and Constellation Energy (CEG) won 2024 thanks to their association with AI. Which stocks could be next?ANET Gets Goldman Sachs BlessingArista Networks Inc (NYSE:ANET) was named a top AI pick by Goldman Sachs to start 2025. Last seen trading at $115.51 and up 88.4% year-over-year, there's technical support at ANET's upwardly-sloping 100-d ...

Arista Networks, Inc. (ANET) has surged 93.1% over the past year compared with the communication components industry’s growth of 75.3%. It has also outperformed its peers like Juniper Networks, Inc. (JNPR) and Cisco Systems, Inc. (CSCO) .Arista continues to benefit from the expanding cloud networking market, which is led by a strong demand for scalable infrastructure. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabl ...

Technology hardware companies are well-poised to gain from increasing demand for innovative devices amid rapid technological advancement especially artificial intelligence (AI) proliferation and 5G rollout.Enterprise spending remains a key growth driver of the tech hardware segment. Businesses are allocating significant budgets to upgrade their IT infrastructure amid accelerated digital transformation and cloud migration and AI. Investment in high-performance servers, cloud-enabled devices, and secure netwo ...

The most recent trading session ended with Arista Networks (ANET) standing at $114.86, reflecting a +0.18% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.04% loss on the day. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.Coming into today, shares of the cloud networking company had gained 14% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.Investors will be eagerly watchi ...

Subscribers to Schaeffer's Weekend Trader options recommendation service received this ANET commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.Arista Networks Inc (NYSE:ANET) stock’s weekly breakout recently cleared long-term resistance at the $108 level. The equity has been in a seasonally strong period dating back to March. With this technical ...

Have you been paying attention to shares of Arista Networks (ANET) ? Shares have been on the move with the stock up 20.1% over the past month. The stock hit a new 52-week high of $112.77 in the previous session. Arista Networks has gained 90.9% since the start of the year compared to the 34.8% move for the Zacks Computer and Technology sector and the 76.1% return for the Zacks Communication - Components industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surpri ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Arista Networks, Inc. (NYSE:ANET) Raymond James 2024 TMT & Consumer Conference Call December 10, 2024 3:00 PM ET Company Participants Ashwin Kohli - Chief Customer Officer Chantelle Breithaupt - Chief Financial Officer Conference Call Participants Simon Leopold - Raymond James Simon Leopold All good. Great. Thank you. Thanks folks for joining us. My name is Simon Leopold, Raymond James, Data Infrastructure Analyst. We are here at Day Two of our TMT and Consumer Conference here in New York and I'm pleased to ...