Arista Networks Raises The Bar - Hyperscalers Unleash Capex (Q4 Review)

Uttam Dey5.42K FollowersFollow5ShareSavePlay(9min)CommentsSummaryArista Networks delivered strong Q4 results, driven by surging AI capex from hyperscalers and robust product revenue growth.ANET raised its AI revenue target for the year by 18%, now guiding to $3.25B, reflecting a 100% jump in annual AI revenues, echoing accelerating AI demand.Despite rising memory costs, management reiterated its 2026 gross margin outlook, leveraging strategic purchase commitments to mitigate supply chain pressures.At ~40x CY26 earnings and 19-20% expected earnings growth, ANET remains attractively valued; I reiterate my bullish rating.Choreograph/iStock via Getty Images Investment Thesis Arista Networks (ANET) reported Q4 earnings yesterday that showed just how well the maker of AI networking switches and routers is balancing its forward growth mandate despite rising costs of components like memory. DespiteThis article was written byUttam Dey5.42K FollowersFollowUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ANET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.