Ultra Ethernet Consortium (UEC) released its first full specification in June 2025, creating an Ethernet-based system designed for AI and high-performance computing (HPC) at scale. Since then, hyperscalers and enterprises have been migrating away from proprietary InfiniBand to open-source Ethernet. Over time, Arista also expects clients to migrate from NVLink to Ethernet/UALink networking in scale-up back-end networks.Until recently, Ethernet wasn't considered strong enough for AI workloads. Instead, Nvidia ...

Group 1 - Evercore ISI raised the price target on Arista Networks (ANET) to $175 from $150, maintaining an Outperform rating [1] - The revised price target reflects expected sales growth of about 20% to $10.5 billion for the calendar year 2026 [1] - Long-term expectations for Arista include mid-teens sales growth, gross margins of 60%-64%, and EBIT margins of 43%-45% [1]

Arista Networks (NYSE:ANET) dropped 9% by the close of market action on Friday, despite revealing higher-than-expected guidance during its Analyst Day event on Thursday. Analysts and investors were mostly impressed with Arista's business update. Goldman Sachs reiterated its Buy rating ...

Key Points Arista held its investor day today. The stock sold off after giving long-term projections that may have appeared conservative. The stock had appreciated 40% this year heading into today, so a round of profit-taking wasn't a surprise. 10 stocks we like better than Arista Networks › Shares of data center switching company Arista Networks (NYSE: ANET) fell on Friday, down 6.9% as of 1:28 p.m. ET. The data center switching company held its analyst day yesterday, during which management ga ...

Core Insights - Arista Networks has experienced significant growth over the past decade, primarily due to its innovative software-based networking solutions that compete effectively with established players like Cisco Systems [2][4] - A $10,000 investment in Arista Networks made in mid-September 2015 would be worth approximately $356,280 today, reflecting an average annualized return of about 42% [4] - The rapid growth of artificial intelligence data centers has been a major driver of Arista's recent performance, although the explosive growth phase may be behind [5][6] Company Positioning - Arista Networks is well-positioned to benefit from the ongoing expansion of the artificial intelligence hardware market, which is expected to grow at an average annual rate of 18% through 2034 [7] - The company's customizable and reprogrammable networking equipment offers a cost-effective long-term solution for AI data center operators [9] Investment Considerations - While the next decade may not yield returns as high as the previous one, Arista Networks still presents significant growth opportunities [6][9] - Analysts have identified other stocks that may offer better investment prospects than Arista Networks at this time [8]

We want to take a look at Arista Networks. That means it's time for our morning trade. Arista Networks unveiling its very latest guidance at the company's investor day.Marley Kaden has been taking a look at this. Marley, what's the very latest here. Yeah, like you said, they had their investor day yesterday and Arista Network's forecast revenue growth that was 20% uh higher than it has been for fiscal 2026 up to $10.5% billion.that was above the uh consensus estimates at its analyst day. They're also saying ...

Core Viewpoint - Arista Networks' stock has seen a significant increase of 72% since May, but analysts warn that its valuation is now well above historical averages, indicating potential growth slowdown risks by 2027 [1] Group 1: Stock Performance - On Friday, Arista Networks (ANET.US) experienced a decline of over 7%, currently trading at $141.93 [1] - The stock has risen 72% since May, reflecting strong market performance [1] Group 2: Analyst Insights - Some analysts highlight that the current market risk/reward profile is tilted downward, suggesting that cautious decision-making is essential for investors [1] - Wall Street remains optimistic about Arista's profit margins over the next two years, particularly due to Broadcom's outlook indicating a potential acceleration in capital expenditure growth starting in 2026 [1] Group 3: Future Growth Concerns - Despite the optimistic short-term outlook, the potential for growth slowdown in 2027 must be factored into evaluations [1]

Core Insights - Arista Networks (ANET) forecasts a 20% revenue growth in fiscal 2026, reaching $10.5 billion, slightly above consensus estimates [1] - The company predicts a 70% growth in AI networking revenue to approximately $2.75 billion in 2026, up from $1.5 billion in 2025, which some analysts consider conservative [2] - Arista's stock experienced volatility, initially rising but then falling by 7% to $142.33, following a 37% increase in 2025 [3] Financial Projections - For fiscal years 2026 to 2029, Arista expects "midteens" revenue growth and long-term operating margins between 43% to 45%, about four points lower than in 2025 [4] - Several Wall Street firms, including Goldman Sachs and JPMorgan, raised their price targets for Arista stock following the analyst day [5] Competitive Landscape - Arista competes with Cisco Systems, Juniper Networks, and Nvidia in the AI Ethernet networking market [6] - The company is gaining traction in the enterprise market, which includes large companies and government agencies, supported by its acquisition of VeloCloud [8] Market Position and Analyst Sentiment - Analysts express optimism about Arista's growth potential, particularly in AI and enterprise markets, with a significant opportunity for market share gains [9] - Arista is recognized as a strong player in the AI sector, with a favorable technical rating of 99 according to IBD [11]

Core Insights - Cloud computing is driving innovation and digital transformation across various industries by enabling firms to access and store data over the Internet without managing physical servers, leading to widespread adoption at minimal operating costs [2][4] - The global cloud computing market is projected to grow from $752.4 billion in 2024 to $2,390.2 billion by 2030, reflecting a compound annual growth rate (CAGR) of 20.4% [6] Industry Overview - Cloud computing eliminates fixed capital expenses related to hardware and software purchases, reduces operating costs, and operates on a pay-per-use model, enhancing productivity and scalability [4] - The services are categorized into four main types: IaaS, PaaS, serverless, and SaaS, each offering varying levels of control and flexibility [5] Key Companies - **Microsoft Corporation (MSFT)**: A leading public cloud provider with its Azure platform, which offers a wide range of IaaS and PaaS solutions. Microsoft has expanded Azure's availability globally, enhancing its competitive position [9][10] - **Alphabet Inc. (GOOGL)**: Google Cloud has become a significant growth driver for Alphabet, with substantial investments in infrastructure and AI capabilities. Google Cloud is now the third-largest cloud provider globally [13][14] - **International Business Machines Corporation (IBM)**: IBM has strengthened its position in the hybrid cloud market through acquisitions like Red Hat and HashiCorp, focusing on analytics, cloud computing, and security for future growth [16][18] - **Arista Networks Inc. (ANET)**: Specializes in cloud networking solutions, offering high-capacity, low-latency products that support various cloud management frameworks. Arista's unified software stack distinguishes it in the industry [19][20][22]

Core Viewpoint - Arista Networks has reached a new all-time high following the release of full-year guidance, projecting $10.5 billion in revenue, which represents a 20% year-over-year growth [1] Company Performance - Arista Networks has significantly outperformed both the broader market and its tech sector competitors over the past year, with notable competitors including Hewlett Packard, Cisco, Dell, and Fortinet [3] - Over the past five years, Arista Networks has shown exceptional performance compared to its peers in the data center and AI infrastructure sectors [3] Technical Analysis - The stock has notable support around the $138 to $140 range, with significant highs and lows observed historically in this area [4] - The volume profile indicates a strong volume node near the $138 to $140 range, suggesting robust support [5] Options Strategy - A cautious approach is recommended due to the stock being overbought on the RSI, despite its recent rally to all-time highs [6] - A neutral to bullish options strategy has been suggested, involving selling an out-of-the-money put vertical, specifically selling the $148 put and buying the $140 put [7][8] - The potential credit collected from this strategy is approximately $220, with a risk of about $580, allowing for a break-even point nearly 4% below the expected opening price [9]