Latest news with #Arista
Yahoo
4 days ago
- Business
- Yahoo
Arista Networks (ANET) Eyes $750M AI Back-End Target; Citi Raises Price Target to $112
Citi recently raised the price target on Arista Networks, Inc. (NYSE:ANET) to $112 from $97 and kept a Buy rating on the shares. Arista engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. The advisory, which expects the company to double its share in the Ethernet AI back end in FY25 and anticipates upward revisions to FY25 and FY26 estimates, believes the company is on track to achieve its $750 million AI back-end target for FY25, which would reflect nearly 20% share. The advisory's estimates are unchanged, but it raised its multiple given Arista's rising AI market share and higher market multiples. A technician in a server room managing a large-scale network of computers. During the first quarter earnings release, management provided Q2 guidance with expected revenues of approximately $2.1 billion. Gross margin is projected at 63%, incorporating tariff impacts. Operating margin is anticipated to be 46%, with an effective tax rate of 21.5%. For fiscal year 2025, the company reiterated its revenue guidance of $8.2 billion, citing ongoing momentum in AI and cloud businesses despite macroeconomic uncertainties. While we acknowledge the potential of ANET, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ANET and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None.
Yahoo
5 days ago
- Business
- Yahoo
Arista Networks (ANET) Eyes $750M AI Back-End Target; Citi Raises Price Target to $112
Citi recently raised the price target on Arista Networks, Inc. (NYSE:ANET) to $112 from $97 and kept a Buy rating on the shares. Arista engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments. The advisory, which expects the company to double its share in the Ethernet AI back end in FY25 and anticipates upward revisions to FY25 and FY26 estimates, believes the company is on track to achieve its $750 million AI back-end target for FY25, which would reflect nearly 20% share. The advisory's estimates are unchanged, but it raised its multiple given Arista's rising AI market share and higher market multiples. A technician in a server room managing a large-scale network of computers. During the first quarter earnings release, management provided Q2 guidance with expected revenues of approximately $2.1 billion. Gross margin is projected at 63%, incorporating tariff impacts. Operating margin is anticipated to be 46%, with an effective tax rate of 21.5%. For fiscal year 2025, the company reiterated its revenue guidance of $8.2 billion, citing ongoing momentum in AI and cloud businesses despite macroeconomic uncertainties. While we acknowledge the potential of ANET, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ANET and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Arista Retreats As Nvidia Touts Meta, Google As New Networking Customers
Arista stock fell amid Nvidia's disclosure that it has nabbed Meta Platforms and Google as new customers for Ethernet networking gear in data centers.
CBS News
6 days ago
- Business
- CBS News
Former arena site in one Colorado city receives no bids for redevelopment, nearby businesses share concerns
No Colorado developers put in bids at site of former 1stBank Center, nearby businesses are worried No Colorado developers put in bids at site of former 1stBank Center, nearby businesses are worried No Colorado developers put in bids at site of former 1stBank Center, nearby businesses are worried If you've driven on Highway 36 between Denver and Boulder in recent months, you've probably noticed something is different in Broomfield. A large sign that used to announce upcoming concerts next to the highway is the only indicator that a music and entertainment venue used to be right next to the Boulder Turnpike. CBS The former 1stBank Center is now a dirt lot in the Arista neighborhood. The demolition of the 19-year-old building cost about $3 million. City council members voted to tear down the building last year as high upkeep costs outpaced income. To redevelop the land the city opened up the lot to bids from developers in February. However, three months later, not a single developer submitted a proposal. How has this impacted local businesses? Some business owners in the Arista area previously told CBS Colorado they were worried about the loss of business from the venue's closure. Now, with the knowledge that there are no bids on the land, there are a lot of questions. Kayla Leavitt opened up her restaurant Proto's Pizza down the street in 2008-- shortly after the arena opened. Leavitt told CBS Colorado they opened the business primarily because the 1stBank Center – also known as the Broomfield Events Center – was close by. When it was open, the venue brought in big-name acts like Green Day and Dead & Company. "We had the 1stBank Center right there," Leavitt said, "Anytime there was a show, there would be a line out the door." But the venue struggled during the pandemic and never quite recovered, eventually resulting in its closure and costing the city millions of dollars. The closure also means less fans walking through the Arista neighborhood, which has cut down customers to some businesses like Proto's. CBS "Now it's like you have to actually, like, scrimp and save during the summertime so that you can make it through the winter," Leavitt said. "Because everything west of us didn't make it." Still, some residents and vendors have seen the community become more residentially focused, with their customer base changing from fans to regulars in the apartments built around the former arena. One resident of a nearby apartment complex sharing they appreciate the extensive parking options without the large events. Still, without any bids on redevelopment, businesses like Proto's might have to wait even longer for a replacement to the empty lot. After no developers bid, what's next for the space? The city released a statement to CBS Colorado about the fact that no developers submitted proposals for the space, sharing in part: "Several developers indicated that they were considering making a proposal, but market and investment considerations resulted in their decision not to proceed at this time. Broomfield staff is working on a strategy for an approach for a future mixed-use development for the site and will provide an update to City Council as the strategy is developed." However, Leavitt said she's skeptical about the possibility for another mixed-use building amid the others already in the neighborhood. CBS "I hear, like a lot, that they want to put, like a mixed residential in there. We already have those. [We need] something that's going to draw people in, like a bowling alley, a grocery store, a literally anything, but apartments." Right now, the bidding process has been closed, and the city did not clarify the city's strategy moving forward. Whatever comes next, Proto's plans to stay at the heart of its Colorado community. "We'll hold on till our last dying breath, even if it's just me inside this building, I will not close," Leavitt said.
Yahoo
6 days ago
- Business
- Yahoo
Arista, Cisco Poised to Dominate AI Switch Market
Arista Networks (NYSE:ANET) and Cisco Systems (NASDAQ:CSCO) stand to gain most from the $29 billion AI switch market by 2029, Evercore ISI says. Warning! GuruFocus has detected 2 Warning Sign with ANET. Back-end network switching for AI is set to grow from $6.3 billion in 2024 to $29 billion by 2029, with hyperscalers driving $17.6 billion of that demand. Evercore's Amit Daryanani estimates Arista could add $7 billion in revenue and over $2.00 in EPS by hitting market-share targetsroughly matching its 2024 run ratewhile Cisco could tack on $3.5 billion in revenue and $0.25 in EPS. Ethernet is forecast to capture the lion's share of growth, potentially up to 90%, as AI clusters at Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) scale out. Daryanani notes that traditional data-center switches won't cut it for AI workloads, and that large enterprises will lean on model-as-a-service rather than build full clusters in-house. He also flags upside for Celestica (NYSE:CLS) and NVIDIA (NASDAQ:NVDA) in supporting components and InfiniBand alternatives. Investors should care because Arista's and Cisco's AI-centric networking strength could drive outsized revenue and profit growth well beyond the broader IT spending cycle. This article first appeared on GuruFocus.
