Why Arista Networks (ANET) Is a Key Networking Play for AI Data Centers

Arista Networks, Inc. (NYSE:ANET) is one of the best AI enabler stocks to buy now.

Arista Networks, Inc. (NYSE:ANET) fits the AI-enabler theme because large AI clusters need more than accelerators. They also need high-speed, low-latency networks that can move data across thousands of GPUs without turning the data center into a very expensive traffic jam. The latest company update came on May 5, when Arista said it had introduced AI-focused networking technologies, including its XPO high-density liquid-cooled pluggable optics and its universal AI spine powered by the 7800 platform. Arista said XPO is designed to reduce networking racks by up to 75% and save up to 44% of floor space compared with traditional pluggable optics.

Why Arista Networks (ANET) Is a Key Networking Play for AI Data Centers

The deeper AI angle came from Arista’s March 12 XPO announcement. The company said the 12.8 Tbps liquid-cooled optics module supports 204.8 Tbps per open compute rack unit, a 4x improvement compared with 1600G-OSFP optics, and was built for AI scale-up, scale-out, scale-across, and metro-reach fabrics. Microsoft also backed the specification as a way to support a broader optical ecosystem for AI data centers.

Arista’s first-quarter numbers show that demand is already feeding into the business, with revenue rising 35.1% year over year to $2.71 billion.

Arista Networks, Inc. (NYSE:ANET) provides cloud networking, data center switching, routing, campus networking, AI networking, automation, analytics, and security software for large data center, cloud, enterprise, and AI infrastructure environments.

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.

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