Billionaire Cliff Asness’ 10 Stock Picks with Huge Upside Potential

3. Arista Network Inc. (NASDAQ:ANET)

AQR Capital Management’s Q4 Stake: $336.1 million

Upside Potential as of April 26: 35.90%

Number of Hedge Fund Holders: 78

Arista Networks, Inc. (NYSE:ANET) is an American computer networking company headquartered in Santa Clara, California. The company specializes in developing and providing multilayer network switches that enable software-defined networking in large-scale data centers, cloud computing, high-performance computing, and high-frequency trading environments.

On April 15, Evercore ISI revised its price target for Arista Networks, Inc. (NYSE:ANET) from $130 to $100, while retaining an Outperform rating. The change comes amid a challenging year for Arista, with the company’s stock price outpacing the broader market’s decline. However, Evercore ISI remains bullish, indicating that Arista Networks is on pace to meet its $750 million back-end AI revenue target and achieve growth rates in the low-20 percent range for calendar year 2025.

Giverny Capital Asset Management stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:

“I trimmed Arista Networks Inc (NYSE:ANET) as it grew beyond 10% weight in the portfolio thanks to its continued outperformance. Arista has been on a tear in January and if our clients are lucky I will leave Arista alone for a while! The market appears to see that Artificial Intelligence data centers are going to require robust investment in networking equipment, and Arista is the leader in that sector.”