1. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders as of Q4: 78
Navellier & Associates’ Equity Stake: $6.75 Million
Arista Networks Inc (NYSE:ANET) is an American computer networking company headquartered in Santa Clara, California, specializing in the design and sale of multilayer network switches that support software-defined networking. Its solutions serve large data centers, cloud computing environments, high-performance computing, and high-frequency trading sectors. As an industry leader in data-driven, client-to-cloud networking, Arista provides infrastructure for AI-driven applications, data centers, campus networks, and routing environments.
In its financial report for the fourth quarter and full year ended December 31, 2024, announced on February 18, 2025, Arista Networks Inc (NYSE:ANET) showcased impressive results that reflected sustained business momentum. Chairperson and CEO Jayshree Ullal expressed pride in the company’s performance, stating that 2024 was a remarkable year of momentum resulting in a record $7 billion in revenue. He expressed his pride at the team’s execution in delivering what he described as the “ultimate combination of superior growth and profitability”.
For the fourth quarter of 2024, Arista Networks Inc (NYSE:ANET) reported revenue of $1.93 billion, marking a 6.6% increase from the third quarter of 2024 and a 25.3% rise compared to the same period in 2023. The company achieved a gross margin of 64.2%, slightly lower than the 64.9% margin recorded in the fourth quarter of 2023. Net income for the quarter reached $801 million, with diluted earnings per share (EPS) of $0.62.
For the full year 2024, Arista Networks Inc (NYSE:ANET) delivered record revenue of $7 billion, a 19.5% increase over fiscal year 2023. The company’s gross margin improved to 64.1%, up from 61.9% the previous year. Net income for the year surged to $2.85 billion, with a diluted EPS of $2.23, compared to $2.09 billion and $1.65 per diluted share in 2023. These results reflect Arista’s continued ability to balance rapid growth with strong profitability, driven by its leadership in AI networking solutions and next-generation cloud infrastructure.
Artisan Global Opportunities Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“Along with NovoNordisk, a notable trim in the quarter included Arista Networks Inc (NYSE:ANET). Arista Networks is the market leader in cloud networking equipment used in data centers. Shares have strongly outperformed since the beginning of 2023 as its ethernet options capture market share in AI cloud environments. Many of the largest buyers in this space are focused on utilizing Arista’s networking technology, given meaningful increases in GPU utilization rates versus InfiniBand, the out-of-the-box solution from NVIDIA. We believe Arista remains exceptionally well positioned. However, we have been trimming the position due to our valuation discipline.”
Overall, ANET ranks first among Louis Navellier’s 10 new stock picks. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
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