Arista Networks: Amid Tariffs, Slow And Steady Wins The Networking Race

(10min)

Summary

  • Arista Networks is outperforming due to strong AI, cloud, and campus demand, with new products driving market share gains and robust revenue growth.
  • Tariff impacts are manageable, with only a minor hit to gross margins expected, thanks to diversified manufacturing and proactive inventory management.
  • Earnings risk is skewed to the upside; guidance remains conservative, but further growth is highly probable if tariffs ease or customer spending holds.
  • Technically, from a chart perspective, the stock is at a pivotal point; I'll hold my position and look to add after the potential rally is confirmed and a favorable pullback.

dynamic digital world map emphasize Western Europe continental for AI powered global network and connectivity big data transfer and cyber technology network information exchange and telecommunication concept.

greenbutterfly

With tariffs, export controls, and many other geopolitical factors at play over the last few months, there's been a lot of uncertainty around technological build-out and buying appetite across the industry. A few things have remained stable, including cybersecurity, data center, and AI CapEx. Networking has

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This article was written by

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Joe Albano is a tech insider with a background and education in electrical and software engineering. He has a unique understanding of current technology and innovation trends as well as what companies are best positioned for future growth across all areas of tech, including AI, as he has called it accurately over the last several years.

Joe leads the investing group Tech Cache where he delivers industry insider expertise to those looking for the best long-term picks, trades, and technical analysis of tech and growth stocks. Features of the group include: access to Joe’s personal portfolio, 2-3 weekly investment ideas, a weekly summary and preview newsletter, watchlist stocks, an automated stock rating system, and live chat.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ANET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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