Here’s What Makes Arista Networks (ANET) an Investment Bet?

Core Insights - ClearBridge Investments released its fourth-quarter 2025 investor letter for the ClearBridge Large Cap Growth Strategy, emphasizing an investment philosophy focused on undervalued leading companies with strong future growth potential [1] - The strategy underperformed the Russell 1000 Growth Index by approximately 900 basis points for the year, trailing its 1.2% quarterly advance by about 170 basis points in the fourth quarter [1] - Underweight exposure to mega-cap AI beneficiaries and lower-quality AI-related names contributed to this underperformance [1] Company Highlights - Arista Networks, Inc. (NYSE:ANET) was highlighted in the investor letter, with a one-month return of -3.21% and a 12.61% increase over the last 52 weeks, closing at $130.08 per share with a market capitalization of $163.808 billion on January 7, 2026 [2] - The ClearBridge Large Cap Growth Strategy initiated a position in Arista Networks, noting its critical role in providing high-speed switches and networking equipment for cloud platforms and data centers, and its potential to gain market share in enterprise networking [3] - Despite Arista's strong revenue growth of 27.5% year-over-year to $2.3 billion in the third quarter of 2025, the company is not among the 30 most popular stocks among hedge funds, with 92 hedge fund portfolios holding its stock at the end of the third quarter [4]