We recently published a list of Jim Cramer’s Latest Calls: Top 10 Stocks. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other top stocks that Jim Cramer discusses.
Jim Cramer recently talked about the impact of tariffs on the US stock market and mentioned some similar events from history.
“We know that the president, who loves tariffs, is now threatening to put tariffs on our trading adversaries that are as high or higher than the fabled Smoot-Hawley Tariff Act of 1930 — yeah, the one that helped cause the Great Depression. The sellers are not oblivious to history, even with the White House is as they see Trump mimicking legendary president Herbert Hoover, who, despite endless diatribes by economists saying Smoot-Hawley could destroy the economy, championed and signed the bill in the name of — yes — the Working Man, especially the farmers. Exports dropped 60%, and we went into the worst depression in our nation’s history. Hoover regretted it, saying that they should be repealed in 1932 — way too late. I think the comparison is excessive, but you never want to be in the same sentence as Herbert Hoover, should you join the sellers.”
Cramer announced the end of Mag. 7 and said he’s buying low-multiple tech stocks, banks and industrials for his charitable trust.
“I would not jump back into the Magnificent 7 because, as of tonight, there is no mag. Came up with that name, scrapping it right now. No moniker fits the 2 or 3 that remain viable.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer has been talking about over the past few weeks. With each stock we have mentioned the number of hedge fund investors. 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Arista Networks Inc (NYSE:ANET)
Number of Hedge Funds Investors: 70
Jim Cramer in a recent program on CNBC was asked about Arista Networks Inc (NYSE:ANET). Here is what he said in response:
“I thought they reported a good quarter. I know people worry about the Meta business. I think the Oracle business can make up for that, but there are other people who feel like, you know, everybody’s shooting at them right now. I think it can bounce, but I know that the competition has gotten tougher. Let’s leave it at that.”
ANET shares have lost 25% this year. Some believe the stock’s valuation has become attractive despite AI CapEx growth fears from major companies. Management remains confident that ANET will hit its AI revenue target of $750 million this year. It sees new opportunities from backend infrastructure growth as AI clusters become increasingly important for data center operators and top hyperscalers. The company has projected a 17% revenue growth rate for 2025, covering both backend and frontend AI infrastructure, totaling around $1.5 billion. Given the scale of $325 billion in big tech CapEx investments for the year, it seems ANET’s guidance was overly cautious.
Giverny Capital Asset Management stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“I trimmed Arista Networks Inc (NYSE:ANET) as it grew beyond 10% weight in the portfolio thanks to its continued outperformance. Arista has been on a tear in January and if our clients are lucky I will leave Arista alone for a while! The market appears to see that Artificial Intelligence data centers are going to require robust investment in networking equipment, and Arista is the leader in that sector.”
Overall, ANET ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of ANET, our conviction lies in the belief that under the radar 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.