What Makes Arista Networks (ANET) a Good Investment?

Core Insights - TCW Concentrated Large Cap Growth Fund reported a return of +4.11% in Q3 2025, underperforming the Russell 1000 Growth Index which returned +10.51% [1] - The fund highlighted Arista Networks, Inc. as a key investment, noting its strong performance and market position [2][3] Fund Performance - The fund's performance in Q3 2025 was influenced by optimism around AI investments and positive corporate earnings [1] - The fund's I share return of +4.11% was significantly lower than the Russell 1000 Growth Index's +10.51% return [1] Company Overview: Arista Networks, Inc. - Arista Networks, Inc. is a technology company specializing in data-driven, client-to-cloud networking solutions [2] - The company reported a revenue of $2.3 billion in Q3 2025, reflecting a year-over-year increase of 27.5% [4] - Arista's stock closed at $130.77 per share on December 24, 2025, with a market capitalization of $164.677 billion [2] Investment Thesis on Arista Networks, Inc. - The company is positioned well in the market due to its product advantages such as speed, scalability, and high reliability [3] - Arista's EOS platform is designed to meet the needs of large-scale cloud companies and enterprises, enhancing its competitive edge [3] - Despite its strong fundamentals, some analysts suggest that other AI stocks may offer greater upside potential [4] Hedge Fund Interest - As of the end of Q3 2025, 92 hedge fund portfolios held Arista Networks, an increase from 81 in the previous quarter [4]