We recently published a list of Analysts Are Talking About These 10 AI Stocks. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other stocks that analysts are talking about.
Gene Munster from Deepwater Asset Management said in a latest program on CNBC that the AI hardware trade is still intact and the analyst believes DeepSeek is a net positive for the industry.
“The consensus DeepSeek has been a positive for AI. I think when it comes to the cost of AI inference, it’s going to go through the floor. Sam Altman said after DeepSeek that they expect the cost of tokens to go down 10 to 12x per year for their second-tier model. I mean, that’s basically through the floor. And I think the third piece to this, if those two happen, we get this hardware build-out, we the cost of compute or the cost of inference declining. I think you’re going to see some just profound impacts. And so I’m still bullish on this market. I think that what we’re seeing right now is a funk, and I think that we still got two great years left of this AI trade.”
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For this article, we picked 10 AI stocks currently making moves on the back of the latest news. With each stock, we have mentioned its hedge fund sentiment. 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).
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Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Investors: 78
Jim Cramer in a latest program on CNBC gave some bullish comments about Arista Networks Inc (NYSE:ANET) and said the company’s management is conservative in guidance.
“Now let me just say this—every time there has been any conservative statement from Jayshree Ullal, you buy, you wait a couple of days, you let the stock settle. This time will be no different. There is no real loss of business at Meta to speak of. And I’ve got to tell you, in the end, everybody raised price. We saw this last week—this phenomenon. Palo Alto gets just trashed the night before, everybody raises price, now the stock is above where it was. This is not the beginning of the end of Arista. They are in almost every data center. They’re doing incredibly well.”
Madison Mid Cap Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“The top five contributors for the quarter were Liberty Formula One, Arista Networks Inc (NYSE:ANET), Copart, Brookfield Asset Management, and Lithia Motors. Arista Networks posted another quarter of better-than-expected revenue and earnings growth. More importantly, the outlook remains robust, with promising results from its AI trials with customers on top of anticipated solid growth in the core business.”
Overall, ANET ranks 9th on our list of stocks that analysts are talking about. While we acknowledge the potential of ANET as an investment, 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.