3 AI and Data Stocks Set to Leave Big Tech in the Dust

Core Viewpoint - AI and data stocks are experiencing significant demand and growth, driven by the expansion of companies working on AI models and the increasing value of human-generated data [1][2]. Group 1: Industry Trends - The demand for data center services is expected to remain strong as companies increasingly rely on AI and cloud computing [2][7]. - Companies are capitalizing on the trend of monetizing human-generated data, with examples like Reddit charging for API access [1]. Group 2: Company Analysis - Arista Networks (ANET): - Stock has increased by 113% over the past year, with Q1 revenue of $1.57 billion, up over 16% year-over-year [3][5]. - Earnings per share of $1.99 beat estimates by $0.25, and the company targets a $60 billion total addressable market in AI networking [3][5]. - Nutanix (NTNX): - Revenue grew nearly 17% year-over-year to $525 million, with annual recurring revenue (ARR) increasing by 24% to $1.82 billion [5]. - Despite recent stock pullback due to weaker forward guidance, earnings per share are expected to double this year and again over the next three years, driven by 15%-20% annual revenue growth [5][6]. - Vertiv (VRT): - Stock is up 292% over the past year, with Q1 sales increasing by 8% to $1.64 billion and adjusted operating margins expanding by 370 basis points to 15.2% [7][8]. - Orders surged 60% year-over-year, indicating strong long-term demand for the company's services [7].