10 Best Computer Hardware Stocks to Buy According to Billionaires

2. Arista Networks Inc (NYSE:ANET)

Number of Billionaire Investors: 17

Billionaire Holdings: $1.6 Billion

Number of Hedge Fund Holders: 78

Arista Networks Inc. (NYSE:ANET) focuses on data-driven, client-to-cloud networking solutions designed for large-scale AI, data center, campus, and routing environments. Its key products include the Extensible Operating System (EOS), ultra-low latency Ethernet switches, routers, and software-defined networking solutions, widely adopted by hyperscale cloud providers, financial institutions, and telecommunications firms.

Although the company’s Q4 2024 results met expectations, concerns arose among some analysts about customer concentration. Arista Networks disclosed that Microsoft and Meta account for approximately 20% and 15% of total revenue, respectively. This reflects a drop in Meta’s contribution, which stood at 20% in 2023.

In response to these concerns, Piper Sandler analyst James Fish raised the price target for the stock from $106 to $108 while maintaining a Neutral rating, as detailed in his February 19th report, published a day after the results. The analyst pointed out that Q4 results were broadly in line with expectations. However, he noted that a modest increase in FY 2025 revenue growth guidance to 17% (from 15%-17% earlier) and potential business risks involving Meta have put pressure on the stock.

On the other hand, UBS analyst David Vogt offered a more optimistic perspective, upgrading Arista Networks (NYSE:ANET) to a Buy rating in his March 5 report, with an increased price target of $115. He based his upgrade on robust data center spending growth and rising metrics such as purchase commitments and deferred revenue. The analyst expressed confidence that the company’s 2025 revenue guidance might be conservative and described the stock as presenting an appealing risk/reward opportunity.