Why Piper Sandler Sees 2026 as an “Year of Refresh” for Arista Networks (ANET)

Core Viewpoint - Arista Networks Inc (NYSE:ANET) is gaining attention as a significant player in the AI stock market, with an upgrade from Piper Sandler to "Overweight" and a price target increase to $159.00, indicating a positive outlook for 2026 as a pivotal year for the company [1][2]. Group 1: Company Performance and Outlook - Piper Sandler highlights 2026 as the "Year of Refresh" for Arista, driven by increased enterprise mentions and investments, as well as exposure to hyperscalers and AI leaders [2]. - The visibility of Arista's business model is improving, supported by a favorable inventory and purchase commitments coverage ratio [2]. - Arista is maintaining its position with key customers despite concerns over competition from whitebox solutions and NVIDIA, as well as potential capital expenditure cycle issues [3]. Group 2: Market Position and Trends - The company is benefiting from large enterprise accounts in both datacenter and campus sectors, and it typically experiences capital expenditure trends on a delayed basis compared to others in the datacenter [3]. - There is a recognition that while Arista has potential, other AI stocks may present greater upside potential with less downside risk [4].