Arista Networks: AI Revenue Targets Turn Pullback into Buying Opportunity

I consider Arista Networks (ANET) a buying opportunity again despite the high price-to-sales ratio following the pullback due to margin pressure from major customers. CEO Jayshree Ullal points to "strong growth" across all business areas for the market leader in high-speed switching for Ethernet connections over 10 gigabits. Classic IT infrastructure is not suitable for AI workloads. Ethernet connections within racks are expected to become a new revenue driver starting in 2027. AI inference is still in its early stages, characterized as the "calm...