Arista Networks, Inc. (ANET): Billionaire Steve Cohen Admires This AI Stock

Arista Networks, Inc. (NYSE:ANET) is one of the 10 Best Stocks to Invest In According to Billionaire Steve Cohen.

Arista Networks, Inc. (NYSE:ANET) is a relatively recent addition to the 13F portfolio of Point72 Asset Management. The fund first disclosed a stake in the company back in the fourth quarter of 2024. This position comprised 3 million shares. By the second quarter of 2025, this had grown to nearly 7 million shares. After trimming the holding by 20% in the third quarter of 2025, the hedge fund added 37% to it in the fourth quarter of 2025. At the end of last year, the fund owned nearly 7.6 million shares in the networking company.

READ ALSO: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.

Jim Cramer on Arista Networks Inc (ANET) Stock: “I Don't Understand Why It's Down This Much”

The most significant driver for institutional buying of Arista Networks, Inc. (NYSE:ANET) stock is the industry-wide move toward open-source Ethernet for backend AI networking. Historically, NVIDIA’s proprietary InfiniBand was the only choice for connecting GPUs. However, hedge funds are betting that hyperscalers like Meta, Microsoft, and Google are switching to Arista’s high-speed Ethernet to avoid vendor lock-in and lower their total cost of ownership. With the launch of the 7800R4 series, Arista has proven that Ethernet can now match InfiniBand’s low latency while supporting clusters of over 100,000 GPUs. As AI data centers hit power and heat limits, Arista is also winning contracts through superior hardware engineering. The firm introduced XPO Liquid-Cooled Optics in March 2026. This module addresses the extreme heat generated by 800G and 1.6T networking.

While we acknowledge the risk and potential of ANET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANET and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Stocks to Buy According to Billionaire David Abrams and 15 Best Stocks to Buy According to Billionaire Seth Klarman.

Disclosure: None. Follow Insider Monkey on Google News.