Where Will Arista Networks Be in 5 Years?

Core Insights - Arista Networks has achieved an impressive 29% average quarterly revenue growth over the past decade, resulting in nearly 900% revenue growth [1][2] - The company is well-positioned to benefit from the ongoing AI infrastructure spending trend, which could reach $6.7 trillion by 2030 [7][8] - Arista Networks estimates its market opportunity at over $70 billion, with projected revenue of $8.2 billion for the coming year, indicating significant upside potential [13] Company Performance - Arista Networks is the 15th best stock performer over the last 10 years, driven by strong demand from major customers like Microsoft and Meta Platforms [1][2] - The company's revenue has more than tripled over the last five years due to surging demand for cloud-based network solutions [9] - Operating margins have reached an all-time high, although there are concerns about potential growth slowdowns and margin normalization [11] Future Growth Potential - Projected revenue growth for Arista Networks is expected to be 17% in the coming year, a decrease from previous years but still indicative of strong performance [14] - If growth continues at a conservative rate of 17% in 2025 and slows to 14% thereafter, revenue could nearly double by 2030 [15][16] - The stock is currently trading at 45 times trailing earnings, suggesting it may be overvalued, but this is justified by the company's leadership position in a growing market [16][18]