Cloud Computing Sector Ideas

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>>> Arista Networks, Inc. (NYSE:ANET)

https://finance.yahoo.com/news/hedge-funds-arista-networks-inc-170554181.html

Number of Hedge Fund Shareholders In Q1 2024: 69

Arista Networks, Inc. (NYSE:ANET) provides networking hardware products used in AI applications. The firm has been doing well financially, as it has beaten adjusted analyst EPS estimates in all four latest quarters. Like other AI stocks, Evercore ISI was quite bullish on Arista Networks, Inc. (NYSE:ANET) in a May 2024 analyst note. This note saw a price target increase to $340 from $320, along with the reiteration of an Outperform rating. Evercore believes that Arista Networks, Inc. (NYSE:ANET) can meet its target to bring $750 million in revenue by fiscal year 2025, allowing it to compete with AI king NVIDIA on the networking hardware front.

As March 2024 ended, 69 hedge funds tracked by Insider Monkey were Arista Networks, Inc. (NYSE:ANET)'s stakeholders. Rajiv Jain's GQG Partners held the most valuable stake which was worth $881 million.

Like other AI stocks, Arista Networks, Inc. (NYSE:ANET)'s forward P/E ratio of 41 shows that investors expect it to grow faster than the benchmark S&P 500. At the firm's latest earnings call, CEO Jayshree Ullal talked about the importance of networking in the AI era as she outlined:

We are witnessing an inflection of AI networking and expect this to continue throughout the year and decade. Ethernet is emerging as a critical infrastructure across both front-end and back-end AI data centers. AI applications simply cannot work in isolation and demand seamless communication among the compute nodes consisting of back-end GPUs and AI accelerators, as well as the front-end nodes like the CPUs alongside storage and IPWAN [ph] systems as well. If you recall, in February, I shared with you that we are progressing well in four major AI Ethernet clusters that we won versus InfiniBand recently. In all four cases, we are now migrating from trials to pilots, connecting thousands of GPUs this year, and we expect production in the range of 10K to 100K GPUs in 2025.

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