10 Hot AI Stocks to Buy Now

8. Arista Networks Inc. (NYSE:ANET)

Magnitude of revision in street 2026 EPS estimates: +17%

Number of Hedge Fund Holders: 70

Arista Networks Inc. (NYSE:ANET) is a leading provider of cloud networking solutions, specializing in data-driven networking for large-scale environments such as data centers, campuses, and routing applications. Their award-winning platforms emphasize availability, agility, automation, analytics, and security, all powered by an advanced network operating system. ANET has established itself as a key player in the networking industry, delivering high-performance Ethernet systems designed to meet the demands of modern cloud computing and AI workloads. In the past 12 months, the stock has surged by over 46%, which places it on our list of hot stocks to buy.

In the evolving AI landscape, Arista Networks Inc. (NYSE:ANET) is poised to capitalize on the increasing demand for efficient and scalable networking solutions, regardless of existing concerns related to the disruption of the AI inferencing market by Chinese entrants. During a recent conference, the management team provided optimistic guidance for 15% to 17% revenue growth in 2025, driven by a mix of cloud and AI opportunities. The company is seeing a paradigm shift in AI back-end networks, where networks need to be architected for 100% throughput with GPUs running constantly for extended periods, and expects $750 million in AI back-end revenue and an additional $750 million in front-end revenue for 2025. ANET has already experienced double-digit upward adjustments in EPS estimates in the last twelve months, which confirms the accelerating market opportunities for the company, and management further confirmed that clients are seeing a strong ROI and are confident in continuing to invest. Here’s what they said:

“The first thing I would say from a demand perspective, and I’ll pass to Martin, is the customers are starting to see ROI. I mean you can look at multiple different hyperscalers who have taken the most aggressive quickest leaps into this, and they’re starting to see the business ROI. That’s critical, of course, because no one is going to keep spending billions of dollars on this if they’re not seeing the business benefits.”