10 AI Stocks in the Spotlight Today

7. Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 75

Arista Networks Inc (NYSE:ANET) is one of the 10 AI Stocks in the Spotlight Today. On July 14, Citi analyst Atif Malik reiterated a Buy rating on the stock with a $123.00 price target. The firm is optimistic that Arista shares will outperform over the next three months due to possible upward revisions to its second-half and full-year outlook once it reports June-quarter results on Aug. 5.

“We are opening a positive catalyst watch on Arista as we believe shares will outperform with positive revisions to the company’s 2H outlook. Arista is expected to provide Sep-Q guidance and an updated FY25 outlook… we anticipate an increase to the company’s outlook for 17% topline growth Y/Y to drive upward revisions to 2H consensus for 15% topline growth Y/Y.”

Based on the company’s strength in the front end and improving trends in data center switching, the firm has raised its full-year 2025 revenue forecast for the company to $8.6 billion.

“We remain constructive on hyperscale data center capex and see upside to 2H/FY25 as ANET benefits from an expanding Ethernet switching TAM.”

The firm’s revenue projections for the June quarter are in line with guidance and consensus, with analysts noting that “management guided to a specific point for sales instead of the typical range, to reflect their confidence.”

“As we shift from defense (1H) to offense (2H), ANET is our top-ranked stock.”

Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.