We recently published a list of Why These 15 Data Center Stocks Are Plunging In 2025. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other data center stocks that are plunging in 2025.
Data center stocks were flying high at the start of the year, but Wall Street turned sour on them quickly. They were among the biggest losers of the recent selloff. Most of the stocks that fell in the past few weeks weren’t just data center pure plays. Investors invested in pick-and-shovel plays during the rally, and these are mostly the stocks that fell significantly as the pendulum swung the other way.
DeepSeek caused a brief crash in data center stocks. These stocks then recovered early on as hyperscalers doubled down. But after Microsoft canceled two of its data center contracts, the bear market quickly returned to the sector. Recent tariff fears and a negative GDP outlook have also weighed in on this previously-hot sector.
The following data center stocks have plunged the most year-to-date in 2025.
Methodology
For this article, I screened the worst-performing data center stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. 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).
A technician in a server room managing a large-scale network of computers.
Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders In Q4 2024: 78
Arista Networks Inc (NYSE:ANET) is a networking solutions company. It sells ethernet switches and software, and these are used primarily in data centers.
The stock is down significantly so far in 2025 due to concerns about declining sales to Meta Platforms. Meta accounted for 20% of the company’s revenue a year ago. It now accounts for around 15%.
The company reported better-than-expected Q4 earnings and projected 17% revenue growth for 2025, but investor sentiment was impacted negatively as Meta reduced its orders.
Moreover, there has been some insider selling. Arista’s CTO sold $95 million worth of stock in January 2025.
Arista Networks also provided cautious guidance for 2025 late last year. It projected $8 billion in revenue vs. $8.12 billion expected. The market saw this as bearish.
The consensus price target of $114 implies 36.39% upside.
ANET stock is down 24.45% year-to-date.
Overall, ANET ranks 9th on our list of data center stocks that are plunging in 2025. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that some 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
