10 Best Hardware Stocks to Buy Now

2. Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 78

Arista Networks Inc (NYSE:ANET) is a leading data-driven cloud networking company that provides technologies for large-scale data centers, campus environments, and routing systems. It operates through Core Networking Systems, Cognitive Adjacencies, and Network Software and Solutions. Its products range from high-speed ethernet switching platforms to Campus wired/wireless products.

In fiscal 2024, Arista Networks Inc (NYSE:ANET) generated $7.03 billion in revenue, reflecting a 19.5% increase year-over-year. The company’s cloud segment contributed around 48% to the annual revenue, whereas the core AI and data center products grew the annual revenue by around 65%. Notably, management shared that Meta has deployed its Arista 7700R4 Distributed Etherlink Switch for its latest Ethernet-based AI cluster. In addition, the company also introduced Switch Aggregation Group capability to its Arista EOS, which is used as an industry-standard Ethernet to group and manage switches.

Moreover, on April 8, Morgan Stanley analyst Meta Marshall maintained a Buy rating on the stock with a price target of $73. It is one of the best hardware stocks to buy now.

Artisan Global Opportunities Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:

“Along with NovoNordisk, a notable trim in the quarter included Arista Networks Inc (NYSE:ANET). Arista Networks is the market leader in cloud networking equipment used in data centers. Shares have strongly outperformed since the beginning of 2023 as its ethernet options capture market share in AI cloud environments. Many of the largest buyers in this space are focused on utilizing Arista’s networking technology, given meaningful increases in GPU utilization rates versus InfiniBand, the out-of-the-box solution from NVIDIA. We believe Arista remains exceptionally well positioned. However, we have been trimming the position due to our valuation discipline.”