Key Stats for Arista Networks Stock
- Price Change: -1.5%
- Current Price: $136
- Advanced Model Price Target: $273
The Street targets $180. The Model targets $273. Who is right? Run the numbers on TIKR →
What Happened This Week?
Arista Networks (ANET) stock pulled back 1.5% to $136 on Friday, closing the week on a soft note despite the “really high” demand for its AI networking platforms.
The dip reflects broader market caution regarding semiconductor supply chains, a theme echoed by Arista management at the Barclays Global Technology Conference.
Is Arista (ANET) Undervalued Today?
The investment case for Arista Networks (ANET) rests on its dominance in the high-speed Ethernet market, which is becoming the backbone of AI clusters.
Operations lead Mark Foss laid out the reality of the current hardware cycle, stating that chip lead times are now “anywhere from 38 weeks or 52 weeks.”
Foss described managing this backlog as “an art more than a science,” noting that Arista must place bets on chip architectures a full year before they are deployed.
He emphasized that, unlike the COVID-era supply shocks, today’s constraints are purely a function of massive growth, stating: “The demand is really high… we’re just managing the best we can.”
Read the full Arista Transcript on TIKR to see the “Supply Chain Art” commentary >>>
According to TIKR’s Advanced Valuation Model, the market is severely underestimating the duration and profitability of this AI infrastructure cycle.
- Advanced Model Price Target: $273
- Current Price: $136
- Potential Upside: +99.9%
The model assumes Arista (ANET) can sustain a 19.5% revenue CAGR, driven by the shift towards non-proprietary Ethernet solutions in hyperscale data centers.
It also projects robust profitability with Net Income Margins holding at 37.5%, rewarding the company’s efficient, software-led business model.
Conclusion: Arista Networks (ANET) is supply-constrained, not demand-constrained. With a valuation model pointing to $273 and a 52-week backlog validating the strength of the AI cycle, the stock appears to be a coiled spring waiting for supply to catch up.
See the full Arista Networks forecast on TIKR >>>
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
