We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Arista Networks, Inc. (NYSE:ANET) stands against the other companies that hit $100 billion in market cap in 2024.
Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.
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He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.
Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:
“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”
Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.
“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”
Our Methodology
For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 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
Cramer commented that data center-related stocks like Arista Networks, Inc. (NYSE:ANET) have run up in the year.
“There’s Arista Networks, which provides hardware and software that monitors data and provides solutions for the big data center companies. No wonder the stock rallied 83% yet it remains relatively unknown, in part because it’s invisible. It makes so-called white boxes. So what? The money’s not invisible.”
Arista Networks (NYSE:ANET) specializes in providing networking solutions for data centers, campuses, and routing, with a focus on AI-driven switches and software designed for automation, monitoring, and security. The company is known for offering cutting-edge technology that addresses the growing demands of AI workloads.
Earlier this year, the company introduced the Arista Etherlink AI platforms, which were developed to optimize network performance for AI-intensive tasks. Among its most advanced solutions is the Distributed Etherlink 7700 AI networking platform, engineered to support up to 10,000 GPU clusters, which are critical for AI processing. This platform was created in close collaboration with Meta, one of its key partners.
For the fourth quarter of fiscal 2024, Arista Networks (NYSE:ANET) expects to generate revenue between $1.85 billion and $1.90 billion, with gross margins anticipated to be slightly lower. Management emphasized the importance of continuing investments in research and development to drive innovation, ensuring the company’s products meet the evolving needs of the market.
Overall ANET ranks 9th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that 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.
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Disclosure: None. This article is originally published at Insider Monkey.