Arista Networks’ $1.5B AI Jackpot: How a “Has-Been” Became Wall Street’s Newest Favorite!

Once considered vulnerable to competitive pressures and margin erosion, Arista Networks (NYSE: ANET) has staged a remarkable comeback that has turned heads on Wall Street. After seeing its stock plunge nearly 50% earlier this year due to fears around tariffs and intensified white-box competition, Arista has bounced back with vengeance. Now trading near $95, the stock has rallied on the back of a robust Q1 2025 print, confident full-year guidance, and its growing role in powering AI infrastructure for tech giants like Microsoft, Meta, and Oracle. Notably, Arista is targeting $1.5 billion in AI-related revenues this year, split evenly between back-end and front-end Ethernet solutions. CEO Jayshree Ullal and CFO Chantelle Breithaupt have not only addressed prior investor concerns but provided tangible roadmaps into high-margin, high-growth sectors like enterprise networking and AI data centers. With analysts targeting $109–$130 as the next move, Arista’s narrative has pivoted from caution to conviction.