6. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders as of Q4: 78
Navellier & Associates’ Equity Stake: $6.75 Million
Upside Potential as of April 23: 60.96%
Arista Networks Inc (NYSE:ANET), a leading American computer networking company based in Santa Clara, California, continues to solidify its position as a pioneer in data-driven, client-to-cloud networking. The company specializes in the design and sale of multilayer network switches that support software-defined networking, catering to large data centers, cloud computing environments, high-performance computing, and high-frequency trading sectors. Arista’s cutting-edge solutions enable infrastructure development for AI-driven applications, advanced routing environments, campus networks, and next-generation data centers, making it a key enabler in the evolution of modern digital ecosystems.
On February 18, 2025, Arista Networks Inc (NYSE:ANET) announced its financial results for the fourth quarter and full year ending December 31, 2024, revealing robust performance and consistent growth. For Q4 2024, the company reported revenue of $1.93 billion, reflecting a 6.6% increase from the prior quarter and a 25.3% rise compared to Q4 2023. Despite a slight year-over-year decrease in gross margin to 64.2% from 64.9%, Arista maintained its profitability, posting a net income of $801 million and diluted earnings per share (EPS) of $0.62.
The full-year financials for 2024 underscored Arista’s strong operational execution and market leadership. Annual revenue reached a record $7 billion, a 19.5% increase over 2023. Gross margin for the year rose to 64.1%, up from 61.9% the previous year, reflecting improved cost efficiencies and product mix. Net income surged to $2.85 billion, compared to $2.09 billion in 2023, while diluted EPS climbed to $2.23 from $1.65. These achievements illustrate Arista Networks Inc (NYSE:ANET)’s ability to combine rapid expansion with sustained profitability, driven by increasing demand for its AI networking solutions and its integral role in supporting next-generation cloud infrastructure.
With a price target of $108.92 and an upside potential of 60.96% according to analysts, Arista Networks Inc (NYSE:ANET) is sixth in the list of Louis Navellier’s stock picks with huge upside potential.
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.”
