Latest news with #AristaNetworks
Yahoo
20 hours ago
- Business
- Yahoo
Billionaires Are Selling Nvidia Stock and Buying a Stock-Split AI Stock Up 530% in 5 Years
A few hedge fund billionaires during the first quarter sold Nvidia and bought Arista Networks, a stock that recently split and has returned 530% in the last five years. Nvidia has struggled with headwinds related to DeepSeek and chip export controls, but the company is still ideally positioned to monetize demand for AI infrastructure. Arista is the market leader in high-speed Ethernet switches, devices that play a critical role in supporting artificial intelligence applications in data centers. 10 stocks we like better than Arista Networks › The artificial intelligence (AI) trade has continued to thrive on Wall Street despite global trade tensions. In the first quarter, these billionaire hedge fund managers sold Nvidia (NASDAQ: NVDA) and bought Arista Networks (NYSE: ANET), a stock that split in December and has returned 530% in the last five years: Ken Griffin at Citadel Advisors sold 1.5 million shares of Nvidia, cutting his exposure 50%. He also added 108,000 shares of Arista, increasing his stake 17%. Israel Englander at Millennium Management sold 740,500 shares of Nvidia, trimming his stake 7%. He also purchased 979,600 shares of Arista, increasing his position 43%. Paul Tudor Jones of Tudor Investment sold 209,000 shares of Nvidia, reducing his exposure 24%. He also purchased 213,800 shares of Arista, opening a new position. Importantly, Citadel and Millennium are two of the three most profitable hedge funds in the world, as measured by net gains since inception, which makes Griffin and Englander particularly good sources of inspiration. But the trades shown were made during the first quarter, which ended two months ago. Here's what investors should know about Nvidia and Arista today. Chinese AI start-up DeepSeek shook investor confidence in Nvidia earlier this year when it reportedly trained sophisticated large language models with fewer and less powerful chips than United States competitors like Anthropic and OpenAI. Investors worried more efficient training methods would reduce demand for Nvidia GPUs, but the opposite is happening, as cheaper models have allowed more businesses to experiment with AI. Investors are also concerned about the long-term impact of the trade war and chip export restrictions. Nvidia built H20 GPUs for China to comply with existing guidelines, but the Trump administration recently prohibited the sale of those chip in China. CEO Jensen Huang says Nvidia could miss hundreds of billions of dollars in sales in the years ahead because the Chinese market is effectively closed to the company. Those concerns may explain why certain hedge fund billionaires trimmed their positions in Nvidia during the first quarter, but I don't think individual investors should follow their lead. Nvidia reported exceptional financial results in the first quarter, and the company recently won new business with big companies in Saudi Arabia and the United Arab Emirates, which drove the stock higher in May. More broadly, Nvidia is the market leader in data center GPUs and InfiniBand networking, both of which play a crucial role in accelerating artificial intelligence workloads. Grand View Research estimates AI infrastructure spending will increase at 30% annually through 2030, and Nvidia is the company best positioned to benefit despite chip export restrictions. With that in mind, Wall Street expects Nvidia's adjusted earnings to grow at 40% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 45 times earnings look reasonable. Patient investors should feel comfortable adding a few shares today. Arista develops networking platforms for cloud and enterprise data centers. The company has disrupted the market with two important innovations: The Extensible Operating System (EOS) is uniquely programmable software that runs across its entire portfolio of switches and routers. That simplifies network management compared to legacy vendors that use multiple operating systems. Arista exclusively sources semiconductors from third-party manufacturers like Broadcom. That lets the company outfit networking gear with the latest chips without spending a substantial amount of money on R&D. It also lets Arista focus on its core competency, which is software. Arista is the market leader in data center switching platforms, per consultancy Gartner. The company has a particularly strong presence in high-speed Ethernet switches, which are crucial for AI and other demanding workloads. Several major technology companies are Arista customers. The list includes Meta Platforms and Microsoft, as well as newer clients Apple and Oracle. Additionally, JPMorgan Chase says Arista could win other major customers as hyperscalers connect their data centers. "Although [Alphabet-subsidiary] Google and Amazon have traditionally relied on whitebox solutions, there is an opportunity in the [data center interconnect] space for Arista's solutions as hyperscalers continue to grow their AI data centers," analysts wrote. Wall Street expects Arista's earnings to grow at 12% annually through 2026. That makes the current valuation of 39 times earnings look relatively expensive. But I think analysts are underestimating the company, as they have in the past. Arista beat the consensus estimate by an average of 14% in the last six quarters. If that trend continues, the current valuation would look reasonable in hindsight. Before you buy stock in Arista Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arista Networks wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon, Arista Networks, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Arista Networks, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends Broadcom and Gartner and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Billionaires Are Selling Nvidia Stock and Buying a Stock-Split AI Stock Up 530% in 5 Years was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Jim Cramer on Arista Networks Inc (ANET) Stock: 'I Don't Understand Why It's Down This Much'
We recently published a list of . In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other stocks that Jim Cramer discussed recently. A caller asked how much runway Arista Networks Inc (NYSE:ANET) has in the AI boom. Here's what Cramer had to say in response: 'Okay…. I've been, boy, you know, I talked about Arista this morning with someone, and we were both aghast that the stock has come down this much. This is a terrific company, and I hadn't, it was with Jeff Marks, my partner for the club, and we think, we gotta do some work. I want Jayshree back. Okay? I'm not going to, Jayshree deserves to have her story told rather than just accept that 19% decline. That's what we're going to do. We'll have her back because I don't understand why it's down this much.' A technician in a server room managing a large-scale network of computers. Arista Networks (NYSE:ANET) develops and sells networking solutions and software to support AI, cloud, and data center operations. The company also provides ongoing customer support and serves a wide range of industries through different sales channels. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
2 days ago
- Business
- Yahoo
Arista Networks (ANET) Surpasses Market Returns: Some Facts Worth Knowing
Arista Networks (ANET) ended the recent trading session at $94.94, demonstrating a +0.47% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.32%. Shares of the cloud networking company have appreciated by 4.11% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2%. Analysts and investors alike will be keeping a close eye on the performance of Arista Networks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.65, marking a 25% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.11 billion, showing a 24.67% escalation compared to the year-ago quarter. For the full year, the Zacks Consensus Estimates project earnings of $2.56 per share and a revenue of $8.31 billion, demonstrating changes of +12.78% and +18.72%, respectively, from the preceding year. Investors should also take note of any recent adjustments to analyst estimates for Arista Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.46% increase. At present, Arista Networks boasts a Zacks Rank of #2 (Buy). Digging into valuation, Arista Networks currently has a Forward P/E ratio of 36.94. This represents a premium compared to its industry's average Forward P/E of 29.52. We can additionally observe that ANET currently boasts a PEG ratio of 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.31. The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Mint
2 days ago
- Business
- Mint
Top 5 First-Generation Women Wealth Creators. Hint it's not Indra K Nooyi
Indian and India-origin women entrepreneurs are constantly shaping the business ecosystem around the world as they build their billion-dollar businesses. The Candere Hurun India Women Leaders List 2025 has showcased the top first-generation self-made wealth creators. Radha Vembu, Kiran Mazumdar-Shaw, Indra K Nooyi, and Meena Sethi were among many other prominent industry names of the top women entrepreneurs who have successfully become the first generation of self-made wealth creators in their families. The data also highlighted that the 'Software and Services' segment was the most dominant sector for these women entrepreneurs, which contributed nearly ₹ 1.11 lakh crore. Retail, finance, healthcare, and media were among the other leading sectors. 1. Radha Vembu: Ranking top of the list is Radha Vembu, an Indian billionaire businesswoman who owns the cloud-based business software multinational giant Zoho Corporation. According to the list, Vembu's wealth stands at ₹ 55,300 crore at the age of 52 years. Radha Vembu is married to Sridhar Vembu and lives at Chengalpattu, near Chennai, Tamil Nadu. 2. Jayshree Ullal: Jayshree Ullal is an Indian-origin British-born billionaire businesswoman who is also the Chief Executive Officer (CEO) and President of Arista Networks, a software services firm. 63-year-old Jayshree Ullal ranked second in the list with her wealth estimated to be around ₹ 48,900 crore, according to the Hurun India list. The CEO is based out of Santa Clara, California, from where she runs the cloud networking company, which designs and sells multiple software products. 3. Kiran Mazumdar-Shaw & Family: The founder of Bengaluru-based biotechnology and biopharmaceutical giant Kiran Mazumdar-Shaw ranked third in the Candere Hurun India Women Leaders List 2025, and her wealth is estimated to be around ₹ 32,000 crore. The 71-year-old industry veteran is based out of Bengaluru and has played a key role in developing India's healthcare industry with the help of her company, Biocon. 4. Falguni Nayar & Family: Online beauty brand Nykaa's (FSN E-Commerce Ventures) founder and CEO, Falguni Nayar, successfully ranked fourth on the Hurun India list with her wealth estimated to be at ₹ 29,000 crore. The 61-year-old CEO is based in Mumbai and has played a major role in developing India's online beauty segment by founding Nykaa with her own money. As of 4 June 2025, the company is listed on the Indian stock market with a market capitalisation (M-Cap) of ₹ 55,721.18 crore. 5. Neha Narkhede & Family: Palo Alto-based Neha Narkhede is the co-founder of the software and service firm Confluent. Narkhede is an Indian-born American whose wealth is estimated to be around ₹ 6,800 crore, which marked her at the fifth rank in the Hurun India list. Other members in the list were Upstox's Kavitha Subramanian at wealth worth ₹ 6,500 crore, Lenskart's Neha Bansal at ₹ 5,100 crore, Former CEO of Pepsico Indra K Nooyi at ₹ 4,800 crore, Knight Riders Sports' Juhi Chawla and family at ₹ 4,500 crore, and lastly, ranking 10th on the Candere Hurun India Women Leaders List 2025 was Meena Sethi and family at an estimated wealth of ₹ 2,700 crore.
Globe and Mail
3 days ago
- Business
- Globe and Mail
1 Hidden-Gem Chip Stock You Should Buy ASAP
Arista Networks (ANET) is slowly building momentum as a foundation enabler of artificial intelligence (AI) compute infrastructure. While Nvidia (NVDA) and Broadcom (AVGO) make the headlines, Arista's networking hardware, supported by its software-centric EOS foundation, is gaining traction in the form of hyperscaler AI clusters. Redburn Atlantic started coverage with a 'Buy' rating in a report citing the critical involvement of Arista in large-scale Ethernet-based AI clusters. While the larger market has turned skittish on generative AI infrastructure investment, Redburn suggests that exposure to internal and external hyperscaler workloads puts Arista on a path for enduring long-term expansion. Beyond short-term headwinds associated with cyclic IT budgets at the corporate level, the company's differentiated technology stack presents a clean runway as AI uptake increases. Following a 6.9% decline on May 29, the stock now sits at a better-looking entry point. About Arista Networks Stock Arista Networks (ANET) is a premier provider of cloud networking solutions for campus environments and big data centers. Located in Santa Clara, California, Arista is a company famous for its Extensible Operating System (EOS), a programmable, open-platform software suite used in its high-speed routers and switches. With a market capitalization of $108 billion, the company generates more than $7 billion in revenue annually. In the last 52 weeks, ANET stock has fluctuated between $59.43 and $133.57. It was trading at around $86, down 6.9% on May 29, and is now down 34% off its year-to-date high. For the year, the stock lags the S&P 500 Index ($SPX), which has gained about 0.4%, as a result mainly of fears about the cyclicality in the spending on the enterprise side of the networking business. Valuations are high, but warranted by Arista's leading presence in Ethernet-based AI architecture. ANET has a forward price-earnings multiple of 37.5x and a price-sales multiple of 15.49x, significantly higher than industry comparables. Its price-cash flow ratio is 41.37x, while the price-book rate is 10.72x, a testament to faith in its asset-light, high-margin business model. Its 40.73% profit margin and 30.48% return on equity make it one of the most profitable operating models in the industry. With zero debt and healthy liquidity, the company can continue to invest in research & development and strategic expansion. Arista Networks Falls Short on Earnings Arista Networks exceeded the $2 billion quarterly revenue mark for the first time in company history during Q1 2025, posting strong top-line growth and maintaining industry-leading margins despite macroeconomic uncertainty. The company reported Q1 2025 revenue of $2.005 billion, up 3.9% quarter-over-quarter and 27.6% year-over-year. Non-GAAP EPS came in at $0.65, up 30% from $0.50 in the year-ago period, while GAAP net income reached $813.8 million, or $0.64 per diluted share. Margins remained robust, with non-GAAP gross margin at 64.1% and GAAP gross margin at 63.7%, nearly flat from the prior quarter and year. The company also executed a record $787 million in stock repurchases, the highest quarterly or annual total in its history, signaling strong conviction in long-term shareholder value. CEO Jayshree Ullal noted, 'As we enter 2025, AI, cloud, and enterprise customers continue to drive network transformation. Arista's trifecta of innovation, growth, and profitability is reflected in our results.' Looking ahead, Arista guided for Q2 2025 revenue of approximately $2.1 billion, with a non-GAAP gross margin of around 63% and an operating margin of around 46%. Management emphasized continued strength in AI-centric innovations, including new Cluster Load Balancing (CLB) and observability tools designed to optimize large-scale AI workloads. What Analysts Expect for Arista Networks Stock Arista has a 'Moderate Buy' rating from 22 analysts. Of these, 14 have 'Strong Buy,' two have 'Moderate Buy,' and six have 'Hold' ratings, according to Barchart. Although the recent pullback has added caution, the overall sentiment remains positive. Redburn's new 'Buy' rating further boosts institutional confidence in Arista's AI relevance. The average price target for ANET is $112, representing nearly 30% upside potential. Redburn's Mike Harrison reiterated that the Street underestimates the strategic value of the AI data center software stack offered by Arista. Nonetheless, he cautioned that near-term AI-related revenue streams for the company are subject to cyclic pressure since the company has exposure in internal and external hyperscaler workloads.
