Why Arista Networks Inc (ANET) Soared on Wednesday

We recently compiled a list of the These 10 Companies Led Gains on Wednesday. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against the other stocks.

Wall Street’s main indices ended firmer on Wednesday as share prices remained boosted by positive catalysts from President Donald Trump’s inauguration coupled with better-than-expected earnings performance.

The Dow rose by 0.30 percent, the S&P 500 grew 0.61 percent, while the Nasdaq Composite increased 1.28 percent.

Meanwhile, 10 companies under mixed sectors mirrored Wall Street’s gains. In this article, we will look at which companies led the rally and explore the reasons behind their impressive performance.

To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A technician in a server room managing a large-scale network of computers.

Arista Networks Inc (NYSE:ANET)

Shares of Arista Networks Inc (NYSE:ANET) rose by 6.83 percent on Wednesday to finish at $129.82 apiece, hitting a new all-time high, as investor sentiment was buoyed by President Donald Trump’s promise of some $500 billion in government funding to boost the Artificial Intelligence sector. Arista Networks traded higher in line with its technology counterparts.

Arista Networks (NYSE:ANET) is part of a growing AI ecosystem fueled by major players like OpenAI, which recently formed a partnership with SoftBank and Oracle, for a joint venture company called Stargate, with an initial $100 billion investment and plans to commit up to $500 billion over the next four years to propel the AI industry.

Arista Networks (NYSE:ANET) is poised to reap even greater benefits from the government’s AI-focused support over the coming years.

Overall ANET ranks 10th on our list of companies that led gains on Wednesday. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ANET but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.