Tuesday, November 28

Arista Networks: Up 82% and Just Getting Started

As we move through this lull where the market tries to figure out if consumer spending will be strong enough to keep the economy alive, we're going to focus heavily on the AI boom. 

Not just because most of our AI-enabled stocks have hit our price targets, but also because a lot of these enablers have use cases outside the current AI revolution. 

If anything, the incredible amount of investment we're seeing in AI is simply just a spiritual evolution of the Cloud boom we had been tracking through 2020 and 2021. 

Right now, this market is thriving on CONNECTIVITY. The biggest value-ad Nvidia has ushered in is a massive wave of investment in networking.

As investors, we can gain access to an immense share of the upside by diversifying our AI holdings with network providers. Sure, companies like Nvidia and AMD are going to garner an immense piece of the gains from AI by building the actual chips that drive AI innovations, but those chips need to be interconnected if they're going to develop anything. We're about to see an explosion in networking investment. 

And since Cisco Systems just recently crumbled under the weight of being at the top of the networking game, we believe one clear winner has emerged. 

Arista Networks ($ANET) is a midcap stalwart that has demonstrated that they are the new networking standard for High-Performance Cloud and AI applications. They have erupted to prominence in the last month specifically, and they have a lot more growth to give. 

Despite a fairly spicy valuation, there is actually an argument here that Arista is being undervalued given the way the market currently understands the infrastructure needs for AI applications. 

So, let's unpack all the exciting details surrounding Arista and how they can keep paving the roads AI models will drive on. 

While the details here can get way too technical way too quickly, we're confident that the high-level view here is actually really engaging👇

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