Jim Cramer’s Best Performers List: 12 Stocks Cramer is Talking About

7. Arista Networks, Inc. (NYSE:ANET)

Number of Hedge Fund Holders: 65

Cramer mentioned that Arista Networks, Inc. (NYSE:ANET) is unsung among the winners and is a dominant player in various types of switches and more.

“I just have such a soft spot for such a good company. It’s called Arista Networks. It is probably the most unsung of all these winners because it’s a dominant player when it comes to network infrastructure for the cloud. But nobody ever sees it.

Yeah, it’s got a lot of business with the data center. I know this is tiresome, but it works. Arista hit an all-time high today. I think it’s got more room to run because this is the dominant player in all sorts of switches, adapters, and networking services that people don’t really care about but are making you a lot of money.”

Arista Networks, Inc. (NYSE:ANET) focuses on developing, marketing, and selling data-driven networking solutions tailored for data center, campus, and routing environments. On October 7, Citi raised the price target on the stock to $460 from $385 and kept a Buy rating. The adjustment aligns with the firm’s upgraded growth outlook for capital expenditures among the “Big Four” cloud providers, which is projected to rise from 40% to 50% year-over-year for 2024.

This positive trend is attributed to strong data center spending in the first half of the year, along with optimistic commentary from the company. Citi forecasts that investment in data center infrastructure will continue to expand due to ongoing demand driven by artificial intelligence, with an expected growth of 40% in 2025.

In August, Arista Networks, Inc. (NYSE:ANET) was selected by the Alabama Fiber Network (AFN), a consortium of eight electric cooperatives, to supply routing and switching equipment for an extensive middle-mile network initiative. The project, which is part of the Be Linked Alabama initiative backed by the State of Alabama, aims to deliver a 6,600-mile open-access network across all 67 counties. The AFN’s investment exceeds $340 million, and the company’s high-performance 7280SR3 platform has been chosen to support this critical broadband expansion.