10 Trending AI Stocks on Wall Street

7. Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 81

Arista Networks Inc (NYSE:ANET) is one of the 10 Trending AI Stocks on Wall Street. On September 12, Goldman Sachs analyst Hendi Susanto raised the price target on the stock to $175.00 (from $155.00) while maintaining a Buy rating. The price target follows the company’s analyst day held on September 11 in Santa Clara, California.

The analyst day highlighted a new long-term financial model with 20% revenue growth expected in 2026 and a mid-teens CAGR from 2026-29. Discussing this, the firm said that it is confident about Arista’s market position as a best-of-breed networking vendor, reinforced by its EOS software which offers superior performance, efficiency, and reliability.

“We attended ANET’s 2025 analyst day on Thursday, September 11th in Santa Clara, California where the company updated its financial framework (2026 outlook, new-long term financial model) and elaborated on key strategic initiatives including investments in its campus portfolio and go-to-market, as well as data center initiatives including bluebox and scale up Ethernet. We are encouraged by ANET’s above-consensus guidance for 20% revenue growth in 2026 and expectations to grow at a mid-teens% 2026-29 CAGR, particularly given both (a) ANET’s demonstrated history of raising its guidance over time, and (b) its strengthened market position as a best-of-breed networking vendor, underpinned by its proprietary EOS which can offer customers greater network performance through simpler management, improved efficiency, and improved reliability. Although ANET’s EBIT margin outlook for 2026E and 2029E are below consensus, we believe this reflects the company’s historical conservatism, particularly given that ANET should realize operating leverage from its strong topline growth despite likely investments in growth initiatives. Ultimately, we gain conviction that Arista is a key beneficiary of AI infrastructure spending and should see tailwinds from (1) the growing adoption of Ethernet in scale-out backend by hyperscalers and AI clouds; (2) the emerging use of Ethernet in scale-up (starting in 2027); and (3) the diversification of compute to custom ASIC and a broader portfolio of merchant silicon. Customer testimonials (which were first announced at our conference earlier this week and included OpenAI, Anthropic, and AMD), as well as a willingness to offer bluebox solutions are further evidence of the company’s strong competitive position and its importance in the AI ecosystem.”

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