We recently published a list of 10 AI Stocks Making Waves on Wall Street. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other AI stocks making waves on Wall Street.
With so much happening in AI, keeping up with the latest news can be challenging. Every day, a new country emerges with its plans to embrace and advance in AI, tech companies keep unveiling new AI products, and industry leaders continue to shape the conservation-sometimes even with sharp exchanges.
READ ALSO: 10 AI Stocks Analysts Are Watching: Latest Ratings and News and Top 14 AI Stocks on Wall Street: News and Analyst Ratings
In the latest news, South Korea has announced plans to secure 10,000 high-performance graphics processing units (GPUs) this year. The country plans to keep itself relevant in the race toward artificial intelligence.
“As competition for dominance in the AI industry intensifies, the competitive landscape is shifting from battles between companies to a full-scale rivalry between national innovation ecosystems”.
-South Korea’s acting President Choi Sang-mok said in a statement.
These 10,000 GPUs will be secured through public-private cooperation to help the country launch services at its national AI computing center early. While the US government has recently announced a new regulation that aims to restrict the flow of American AI chips and technology to certain countries, South Korea doesn’t fall into the restricted list.
The details of the type of GPU products to be purchased by South Korea, its models, and other particulars will be finalized by September of this year. The US regulation has essentially divided the world into two tiers. 18 countries are essentially exempt from the restrictions, while 120 face caps, and countries such as Iran, China, and Russia are barred completely.
In other news, tech mogul Elon Musk has released its latest artificial intelligence model, Grok 3. According to Musk, the AI model can outperform offerings from OpenAI and China’s DeepSeek based on early testing. This testing included standardized tests on math, science, and coding.
“We’re very excited to present Grok 3, which is, we think, an order of magnitude more capable than Grok 2 in a very short period of time”.
-Musk said at a demonstration of Grok 3 on his social media platform X.
Musk’s team also said it was launching a new product called “Deep Search”, set to act as a “next generation search engine.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician in a server room managing a large-scale network of computers.
Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders: 70
Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions. On February 16, Morgan Stanley highlighted several overweight-rated stocks to buy ahead of earnings, including Arista Networks. Analyst Meta Marshall is standing by shares of the networking stock ahead of earnings on Tuesday.
“[The] company has beaten revenue by ~300-400bps over the last 3-4 years, about in line with buyside expectations into the quarter”.
-Meta Marshall
Still, she said that the fourth-quarter results are not likely to move the needle.
“Further multiple expansion” is on hold until the company shows a meaningful amount of new customers”
The firm did highlight Arista (NYSE:ANET) as having an underappreciated opportunity in the data center space.
“Our checks were incrementally more positive on networking this quarter, with data center an area of focus and expectations of gradual improvement throughout the year”.
Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $120 implies a 12% upside, however, the Street-high target of $145 implies an upside of 36%.
Overall, ANET ranks 6th on our list of AI stocks making waves on Wall Street. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
