Arista Networks (ANET) Benefited in Q1 from Artificial Intelligence Arms Race

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund was up 5.3% compared to a 4.1% return for the Russell Midcap Index benchmark.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Mid Cap Fund highlighted stocks like Arista Networks, Inc. (NYSE:ANET) in its Q1 2023 investor letter. Headquartered in Santa Clara, California, Arista Networks, Inc. (NYSE:ANET) is a cloud networking solutions provider. On April 17, 2023, Arista Networks, Inc. (NYSE:ANET) stock closed at $163.42 per share. One-month return of Arista Networks, Inc. (NYSE:ANET) was -2.77%, and its shares gained 26.84% of their value over the last 52 weeks. Arista Networks, Inc. (NYSE:ANET) has a market capitalization of $50.071 billion.

Madison Mid Cap Fund made the following comment about Arista Networks, Inc. (NYSE:ANET) in its Q1 2023 investor letter:

“Arista Networks, Inc. (NYSE:ANET) stock benefited from the artificial intelligence arms race triggered by the massive publicity that ChatGPT and Microsoft have received. Arista’s data center switches enable faster and more robust data center capacity; we have believed from our initial investment date a few years ago that the inexorable trend towards more cloud bandwidth will keep Arista in switch industry pole position for many years, and thus, the recent favorable views come as no surprise. Microsoft is Arista’s largest customer, so any step up in spending by them to enable ChatGPT capabilities should accrue to Arista as well.”

Arista Networks, Inc. (NYSE:ANET) is not on our list of 30 Most Popular Stocks Among Hedge Funds.  As per our database, 53 hedge fund portfolios held Arista Networks, Inc. (NYSE:ANET) at the end of the fourth quarter which was 42 in the previous quarter.

We discussed Arista Networks, Inc. (NYSE:ANET) in another article and shared the list of best edge computing stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 10 Best FAANG Stocks To Buy Now
• 15 Fastest Growing DTC Companies in 2023
• 16 Best Places in New York for Young Adults

Disclosure: None. This article is originally published at Insider Monkey.