Jim Cramer’s Latest Calls: Top 10 Stocks

4. 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.”