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Arista Stock Falls As Nvidia Wins Meta, Oracle Orders For AI Networking Chips
Investors· 2025-10-14 12:00
Arista's two biggest customers for computer network switches have been Microsoft (MSFT) and Facebook parent Meta. Oracle has been viewed as a potential new customer. Oracle has signed massive AI infrastructure deals with OpenAI and others. Shares in Arista Networks (ANET) fell for a second day after Nvidia (NVDA) announced that Oracle (ORCL) and Meta Platforms (META) will use its Spectrum-X Ethernet networking devices in next-generation data centers for artificial intelligence computing. Arista stock is up ...
Arista Stock Reverses Down Amid Analyst Day Touting AI Growth Outlook
Investors· 2025-09-12 14:41
Core Insights - Arista Networks (ANET) forecasts a 20% revenue growth in fiscal 2026, reaching $10.5 billion, slightly above consensus estimates [1] - The company predicts a 70% growth in AI networking revenue to approximately $2.75 billion in 2026, up from $1.5 billion in 2025, which some analysts consider conservative [2] - Arista's stock experienced volatility, initially rising but then falling by 7% to $142.33, following a 37% increase in 2025 [3] Financial Projections - For fiscal years 2026 to 2029, Arista expects "midteens" revenue growth and long-term operating margins between 43% to 45%, about four points lower than in 2025 [4] - Several Wall Street firms, including Goldman Sachs and JPMorgan, raised their price targets for Arista stock following the analyst day [5] Competitive Landscape - Arista competes with Cisco Systems, Juniper Networks, and Nvidia in the AI Ethernet networking market [6] - The company is gaining traction in the enterprise market, which includes large companies and government agencies, supported by its acquisition of VeloCloud [8] Market Position and Analyst Sentiment - Analysts express optimism about Arista's growth potential, particularly in AI and enterprise markets, with a significant opportunity for market share gains [9] - Arista is recognized as a strong player in the AI sector, with a favorable technical rating of 99 according to IBD [11]