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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.

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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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