ℹ️ How are these calculated?
🎯 Investment Thesis
Arista dominates high-speed Ethernet switching for AI data centers — the network fabric connecting GPU clusters. Revenue $8.6B with 43% EBITDA margins and zero debt. 90% of analysts bullish with consensus PT $164 implying 17% upside. Piper Sandler upgraded to Overweight ($159), Barclays Overweight ($183). Q4 earnings Feb 12 is the immediate catalyst. 15% below ATH ($165) as AI data center networking demand accelerates.
⚠️ Key Risk
NVIDIA Spectrum-X and new Cisco Silicon One G300 both competing for AI networking share. 42x forward PE is expensive. Customer concentration in Meta and Microsoft. Supply chain constraints could affect margins and order fulfillment. Rosenblatt only Neutral ($165).
By The Numbers
Event Impact
Leads high-throughput Ethernet switching for AI clusters. 43% EBITDA margin. Hyperscaler demand accelerating.
No defense or energy exposure.
Networking infrastructure may serve quantum data centers.
Minimal China exposure. US hyperscaler customer base.
Zero debt, $5.5B cash. Pristine balance sheet insulated from rate changes. Some international revenue benefits from weaker dollar. At 40x PE, growth multiple exposed but fundamentals offset.
DC networking enables AI workloads that drive power demand. Indirect grid beneficiary.
No significant fiscal exposure.
Price Targets
Upcoming Catalysts
Competitive Landscape
Company Background
Founded 2004 by Andy Bechtolsheim and David Cheriton (early Google investors). Built cloud-native networking that displaced Cisco in hyperscale data centers.