We recently compiled a list of the 15 AI News You Missed This Week. In this article, we are going to take a look at where Arista Networks, Inc. (NYSE:ANET) stands against the other AI stocks you missed this week.
There is a lot of debate around potential AI policy changes as Donald Trump prepares to take charge as US president. According to a report by news platform Wired, a Trump administration AI policy would likely prioritize ensuring US leadership in AI development, focusing on competition with China. This strategy, per the report, could involve bolstering federal resources to support massive AI projects and maintaining or intensifying sanctions on Chinese tech companies to restrict their access to critical US technology, like advanced chips essential for training powerful AI models. Trump has promised to repeal the executive order on AI by US President Biden, which was introduced to implement safety measures like preventing algorithmic bias and strengthening federal oversight of AI developments. Critics argue that reversing these policies could lead to less oversight in a rapidly evolving field, potentially increasing risks as AI is deployed more broadly.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Another important development that investors should keep an eye on is the influence of Elon Musk on Trump’s policies. Musk aggressively backed Trump during the campaign and his AI startup, xAI, could benefit from friendly Trump policies, per the Wired report. The report also added that the focus on xAI would in turn serve to make OpenAI and Google targets, perhaps threatening the ability of the two firms to secure lucrative future government contracts.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing 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)
Market Capitalization: $124 Billion
Arista Networks, Inc. (NYSE:ANET) engages in the development, marketing, and sale of data-driven, client-to-cloud networking solutions for data center, campus, and routing environments. On November 8, Barclays raised the price target on the stock to $495 from $341 and kept an Overweight rating on the shares. The company beat Q3 estimates and guided next year to 15%-17%, slightly lower than expectations but likely conservative, the advisory told investors in a research note. The advisory was encouraged by Arista’s artificial intelligence ramp as well as share gains in campus and routing.
Overall ANET ranks 11th on our list of the AI stocks you missed this week. 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 more promising than ANET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.