Arista Networks Inc. (ANET): Why This Mega-cap Stock Could Continue Surging Post 52-week Highs

We recently compiled a list of the 10 Mega-Cap Stocks That Could Continue Surging Post 52-Week Highs. In this article, we are going to take a look at where Arista Networks Inc. (NYSE:ANET) stands against the other mega-cap stocks.

The US stock markets have gone up leading up to the day of President Donald Trump’s inauguration. All the major indices are set to continue their optimism from last week, when the Dow, the S&P, and the Nasdaq all reported gains of over 3.7%.

Even though the S&P had hardly moved from its early November levels when the election happened, many mega-cap stocks continue to register 52-week highs. We looked at some of these stocks and why they are expected to continue surging up with the earnings season already underway.

To come up with our list of 10 mega-cap stocks that could continue surging post 52-week highs, we only considered stocks that have recently hit their 52-week highs and have a market cap of at least $150 billion.

A technician in a server room managing a large-scale network of computers.

Arista Networks Inc. (NYSE:ANET)

Arista Networks Inc. is a cloud networking solution provider for campus, data center, and routing environments. The firm is a major player in high-speed AI networking, being one of the top suppliers in the market. The company’s stock hit a 52-week high indicating a positive trend.

Since late 2022 ANET has recorded a 280% price surge. This isn’t as impressive as some of the AI stocks but it still comfortably outperformed the S&P 500. The company is expected to create a mid-teens growth cadence by 2026. Even though the valuation seems high, keeping in mind the future growth of AI, the price is justified considering the long-term investment potential of the firm.

The share price continued its momentum in 2024, going up 90% to end another successful year. It is likely to follow the upward trend in 2025 as well making it an ideal long-term option for investors.

Overall ANET ranks 9th on our list of the mega-cap stocks that could continue surging post 52-week highs. 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 timeframe. If you are looking for an AI stock that is as promising as ANET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.