Arista Networks (ANET) Stock

We have just released a list of the 35 Most Important AI Stocks according to Coatue. In this article, we will examine how Arista Networks Inc (NYSE:ANET) compares to the other top AI stocks on Coatue's list. The rise of artificial intelligence (AI) has significantly boosted the technology sector, leading to increases in major market indices.

In recent trading days, the stock price of Arista Networks (NYSE: ANET) has dropped sharply. On January 27, 2025, the shares fell by about 19%, starting at $109.62 on January 29, 2025, which is a big drop from the last closing price of $129.17.

In the most recent trading session, Arista Networks (ANET) finished at $107.84, which is an increase of 1.22% compared to the day before.

Arista Networks (ANET) saw an increase in its share price during the last trading session, with higher-than-normal trading volume. However, the recent changes in earnings estimates for the stock do not indicate that this upward trend will continue in the future.

Arista Networks is likely to gain from the higher AI capital expenditures by major clients like Microsoft and Meta Platforms, suggesting possible revenue growth that exceeds current market predictions. Recently, Meta Platforms revealed an extra $65 billion investment in capital expenditures, which is very advantageous for Arista Networks because of their strong partnership. Although DeepSeek has caused some challenges in the AI sector, I think these difficulties are only temporary and not justified for the AI networking market.

If you had invested $10,000 in Arista Networks ten years ago, how much would it be worth now? Currently, the company's forward-looking price-to-earnings (P/E) ratio is 49, which is significantly higher than its five-year average of 30, suggesting that the stock may be overpriced at this time.

This Analyst Blog features companies like Broadcom, NVIDIA, Amazon.com, Arista Networks, and Oracle.

A few years back, I might have thought that Arista Networks was connected to Arista Records, the well-known music label with artists like Whitney Houston and Aretha Franklin. However, that's not the case; Arista Networks focuses on networking technology, including routers and network switches.

Arista Networks (ANET 6.85%) saw a significant increase in its stock on Wednesday. The company's share price finished the day with a rise of 6.8%, having reached a peak of 8% during the trading session.