Arista Networks (ANET) Rallied on Outstanding Revenue Growth

Core Viewpoint - Madison Mid Cap Fund's third-quarter 2025 performance was below the Russell Midcap Index, with a return of 1.9% compared to the index's 5.3% increase, highlighting the strong performance of technology stocks, particularly Arista Networks [1][2]. Group 1: Fund Performance - The Madison Mid Cap Fund (Class I) returned 1.9% in Q3 2025, underperforming the Russell Midcap Index, which increased by 5.3% [1]. - The Russell Mid Cap Index saw significant growth in Q3 2025, with Information Technology leading both quarterly and year-to-date performance [1]. Group 2: Arista Networks Inc. Overview - Arista Networks, Inc. (NYSE:ANET) reported a one-month return of -22.25% and a 52-week gain of 17.68%, with a closing stock price of $119.59 and a market capitalization of $150.598 billion as of November 20, 2025 [2]. - In Q3 2025, Arista Networks generated revenue of $2.3 billion, reflecting a year-over-year increase of 27.5%, surpassing expectations [4]. Group 3: Investment Insights - Madison Mid Cap Fund highlighted Arista Networks as a strong performer, benefiting from increased spending in AI-related data centers, alongside other companies like Amphenol [3]. - Despite the potential of Arista Networks, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [4].