Arista Networks Inc (NYSE:ANET) is one of the 12 AI Stocks Wall Street Is Watching Now. The key takeaway for Arista Networks recently is “continue to accumulate here.” Piper Sandler sees AI-driven demand for the stock and that too, despite having near-term concerns centered on growth and increased de-commitments.
On May 6, analyst James Fish raised the price target on the stock to $181 from $175 and maintained an “Overweight” rating.
Shares are lower following a 35% run over the last month, with early concerns post-print around ‘peak-growth’ and “increased de-commitments” commentary constraining growth.
Investors, the firm noted, have been concerned about peak growth and increased de-commitments, which suggests how some customers may be reducing or even delaying prior commitments. However, this weakness isn’t reason enough to avoid the stock.
Piper Sandler Raises Arista Networks (ANET) Target on AI Momentum
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Piper Sandler noted how Arista’s business is demonstrating acceleration on the back of AI exposure. ANET, it noted, is well-exposed for inference-based use cases provided that it counts hyperscalers, AI Titans, neoclouds, Edge Platforms, and large enterprises as customers.
What’s been working in this market is acceleration due to AI, and Arista is no exception to that, as the strong growth should persist through this year given underlying demand & visibility (and despite competitive concerns). Continue to accumulate here.
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.
While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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