Core Insights - Arista Networks, Inc. (NYSE:ANET) is currently considered one of the most profitable stocks on the NYSE, with Mizuho Securities reiterating a Buy rating and setting a price target of $175 [1]. Product Developments - On December 10, Arista Networks announced advancements for Cognitive Campus scale, introducing Arista Virtual Ethernet Segment with Proxy ARP (Arista VESPA) for WLAN mobility, which allows for the deployment of large-scale mobility domains supporting over 500,000 clients [2]. - The company also expanded its Arista AVA® (Autonomous Virtual Assist) agentic AI framework, enhancing operational simplicity and proactive intelligence in AIOps [3]. - Two new ruggedized platforms, 710HXP-28TXH and 710HXP-20TNH, were introduced, designed for demanding industrial or outdoor environments, featuring a 1RU 24-port switch with an IP30 rating and a 20-port Din Rail switch with an IP50 rating [3]. Availability and Offerings - All newly announced software capabilities and switch platforms are expected to be generally available by fiscal Q1 2026 [4]. - Arista Networks develops and sells cloud networking solutions, including EOS, Gigabit Ethernet switching, and routing platforms, along with various product categories such as Core, Cognitive Adjacencies, and Network Software and Services [4].

Core Insights - Arista Networks, Inc. (ANET) is experiencing strong market traction with its data-driven network platforms, focusing on enhancing compute capabilities and GPU utilization through its Etherlink architecture [1][8] - The company is collaborating with NVIDIA to create a streamlined AI data center ecosystem that integrates AI networking and compute infrastructure [2] - Arista aims to build a broad ecosystem involving major players like AMD, OpenAI, and others, as AI networking transitions from 400G to 800G and is expected to reach 1.6T [3] Market Growth - The AI in networks market is projected to grow from $15.28 billion in 2025 to $192.42 billion in 2034, with a compound annual growth rate of 32.51% [4] - Arista has reaffirmed its revenue targets of $1.5 billion from AI in 2025 and $2.75 billion in 2026, driven by demand from cloud and AI leaders [4][8] Competitive Landscape - Arista faces competition from Hewlett Packard Enterprise (HPE) and Cisco Systems, both of which are expanding their AI networking capabilities [5][6] - Cisco is leveraging its partnerships and has seen significant growth in data center switching orders, while HPE reported a 150% year-over-year increase in net sales in its Networking division [5][6] Financial Performance - Arista's shares have increased by 8% over the past year, outperforming the industry growth of 0.8% [7] - The company trades at a forward price-to-sales ratio of 14.88, significantly above the industry average of 4.75 [9] - Earnings estimates for 2025 and 2026 have risen by 3.23% to $2.88 and 3.44% to $3.31, respectively, over the past 60 days [11]

Key Takeaways Diving into the bull case for 2026 and why investors should buy stocks right now. First Solar is a must-buy AI energy stock in 2026 for growth, value, and breakout potential. ANET is a great picks-and-shovels AI stock that works directly with AI hyperscalers Meta and Microsoft. The bullish pillars of artificial intelligence-driven earnings growth and lower interest rates should propel the stock market higher in 2026. This means investors likely want to start buying stocks with great upside pot ...

15 December 2025 | 5:32PM EST Equity Research AMERICAS TECHNOLOGY IT Spending Survey: Downtick in spending intentions though indices remain in expansion territory IT spending intentions remain generally resilient in our November 2025 survey despite uncertainty in the global macroeconomic backdrop Our overall IT spending index decreased to 68.0 from 74.0, and our IT Capital Spending Index decreased to 65.5 from 67.0. For context, the average Overall IT spending index and IT Capital Spending Index figures sta ...

Market Overview - Stocks initially moved higher at the start of trading on Monday but quickly lost ground, with major averages ending the day modestly lower. The Nasdaq fell by 137.76 points (0.6%) to 23,057.41, the S&P 500 dipped by 10.90 points (0.2%) to 6,816.51, and the Dow decreased by 41.49 points (0.1%) to 48,416.56 [1] Sector Performance - Computer hardware stocks continued their sharp pullback from the previous session, leading to a 2.9% decline in the NYSE Arca Computer Hardware Index [4] - Software stocks also experienced considerable weakness, with the Dow Jones U.S. Software Index losing 1.5%. Other sectors such as telecom, networking, and brokerage stocks showed notable declines, while pharmaceutical and healthcare stocks performed strongly [5] Economic Data Impact - Upcoming economic reports, including the monthly jobs report for November and retail sales data for October, are expected to influence market sentiment. A report on consumer price inflation is also scheduled for release, which could affect interest rate outlooks following the Federal Reserve's recent monetary policy announcement [3][8]

This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. The Trial Balance is CFO.com’s weekly preview of stories, stats and events to help you prepare. Part 1 — Cisco CFO uses rival’s M&A deal to frame integration risk Cisco CFO Mark Patterson used a Dec. 11 investor conference to frame rival Hewlett Packard Enterprise’s Juniper Networks acquisition as a source of customer uncertainty, and a competitive advantage for Cisco, highl ...

Core Viewpoint - Arista Networks Inc (NYSE:ANET) is currently highlighted as an AI stock, with Evercore ISI maintaining an "Outperform" rating and a price target of $175.00, despite removing it from their Tactical Outperform list due to recent stock performance and conservative guidance [1][2]. Financial Performance - The September quarter saw Arista Networks achieve a revenue growth of approximately 27% year-over-year, attributed to increased demand in AI and strong enterprise performance [2]. - Gross margins for the quarter were reported at 65.2%, exceeding expectations [2]. Market Position and Outlook - The firm suggests that the recent stock decline reflects conservative guidance and variability in shipments, which may create opportunities for upside as the calendar year 2026 progresses [3]. - The overall networking sector is expected to experience significant growth, with Arista Networks well-positioned to benefit from increased investments in scale-out, scale-up, and scale-across strategies [3].

Core Insights - HPE India is focused on expanding its networking business, particularly in hyper-cloud systems, following the acquisition of Juniper Networks Inc [1][2] Group 1: Networking Business Growth - The Managing Director and SVP, Bhawna Agarwal, expressed strong optimism about the growth potential of HPE's networking portfolio in India, indicating a commitment to accelerate efforts in this area [2] - HPE aims to enhance user experience through secure AI self-driving networks, which are designed to minimize operational issues and costs [2][3] Group 2: Hybrid Cloud and AI Integration - HPE plans to leverage Juniper's AI capabilities to create a simplified, AI-driven platform that requires less human intervention, thereby improving customer engagement [3] - The company has experienced significant success in the hybrid cloud sector in India and intends to enhance interoperability and observability to better support customers [4] Group 3: Sectoral Focus and Opportunities - HPE is witnessing strong demand for networking services across various sectors, including banking, manufacturing, media, entertainment, telecom, and public sector, with positive signals from both government and private entities [5] - The company is particularly optimistic about growth in the media and entertainment sectors, as well as content within telecommunications [5] Group 4: Make in India Initiative - HPE is committed to its "Make in India" initiative, emphasizing deeper engagement in compute-centric discussions with customers and plans to increase investments in this area [6] Group 5: Sustainability Trends - There is a growing customer interest in sustainability measures within the context of AI, which is expected to evolve over time [7][8] - HPE is actively partnering with global stakeholders, including those in India, to address sustainability concerns, recognizing its importance for long-term investment returns [8] Group 6: Data Sovereignty and AI Networking - The trend towards data sovereignty is driving demand for AI networking solutions, as companies seek better control and compliance in secure environments [9] - Organizations are looking for streamlined ways to analyze and derive insights from their data, aiming for improved ROI on their investments [9]

Group 1 - Cisco Systems, Inc. has seen a significant change in its valuation, dropping from a forward price to earnings multiple of over 130 in 2000 to less than 19 times forward earnings currently, indicating a more stable and mature company profile [1] - The company is recognized for creating networking, security, and collaboration tools that help organizations maintain connectivity and security [2] - Despite its potential as an investment, there are opinions suggesting that certain AI stocks may offer greater upside potential and carry less downside risk compared to Cisco [2]

Market Performance - Major stock indices experienced a significant decline, with the Nasdaq dropping 398.69 points or 1.7 percent to 23,195.17 and the S&P 500 falling 73.59 points or 1.1 percent to 6,827.41 [1] - The Dow posted a more modest loss of 245.96 points or 0.5 percent to 48,458.05 after reaching a new record intraday high earlier in the session [2] - For the week, the Dow increased by 1.1 percent, while the S&P 500 decreased by 0.6 percent and the Nasdaq fell by 1.6 percent [2] Sector Performance - The tech sector was notably impacted, with Broadcom (AVGO) leading the decline, plunging more than 11 percent despite reporting better-than-expected fiscal fourth-quarter results [3] - Other tech stocks such as Micron Technology (MU), Oracle (ORCL), Advanced Micro Devices (AMD), and Nvidia (NVDA) also saw significant declines, indicating a continued rotation out of tech stocks [3] - The NYSE Arca Computer Hardware Index experienced a 5.2 percent drop, reflecting poor performance in computer hardware stocks [5] Economic Sentiment - Negative sentiment in the market was partly influenced by comments from Chicago Federal Reserve President Austan Goolsbee, who expressed concerns about prematurely cutting interest rates [4] - Goolsbee indicated that he preferred to wait for more data, particularly regarding inflation, before making further rate cuts [4] Other Markets - In overseas trading, stocks in the Asia-Pacific region saw notable gains, with Japan's Nikkei 225 Index rising by 1.4 percent and Hong Kong's Hang Seng Index increasing by 1.8 percent [6] - Conversely, major European markets experienced declines, with the French CAC 40 Index down by 0.2 percent, the German DAX Index down by 0.5 percent, and the U.K.'s FTSE 100 Index down by 0.6 percent [6] Bond Market - The bond market saw a pullback, with the yield on the benchmark ten-year note rising by 5.3 basis points to 4.194 percent [7]