Can Arista Networks’ (ANET) AI Momentum Sustain Long-Term Institutional Confidence Amid Insider Selling?

• In recent days, Arista Networks reported third-quarter 2025 revenue of US$2.3 billion, marking a 27.5% year-over-year increase that exceeded analyst expectations and underscored surging demand driven by AI-related data center investments.
• Institutional investors have grown their holdings in Arista Networks, as the company continues to play a pivotal role in AI infrastructure despite recent insider share sales during a sector downturn.
• Given Arista’s standout revenue performance and accelerating AI data center growth, we’ll assess how these factors interact with its long-term investment narrative.

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Arista Networks Investment Narrative Recap

To invest in Arista Networks, you need to believe in ongoing, robust demand for AI-focused networking, particularly from large cloud and AI customers, which underpins Arista’s core growth narrative. The latest earnings beat reiterates this catalyst, but customer concentration risk remains the most significant short-term challenge. Recent news of insider selling and sector volatility does not appear to alter the importance of revenue dependence on a handful of hyperscalers.

Of the recent updates, the launch of Arista’s R4 Series platforms directly supports the momentum seen in Q3 2025 and highlights the company’s push into high-capacity, AI-enabled data center networking. This product move aligns with the surging demand behind Arista’s standout revenue, further cementing the company’s relevance to ongoing AI infrastructure spending.

In contrast, investors should be aware that a single unexpected change in demand or contracts from top customers could rapidly alter...

Read the full narrative on Arista Networks (it's free!)

Arista Networks' narrative projects $13.6 billion revenue and $5.4 billion earnings by 2028. This requires 19.5% yearly revenue growth and a $2.1 billion earnings increase from $3.3 billion.

Uncover how Arista Networks' forecasts yield a $163.87 fair value, a 40% upside to its current price.

Exploring Other Perspectives

While consensus estimates suggest steady growth, the most optimistic analysts pre-news saw Arista reaching annual revenues of US$15.4 billion and earnings of US$5.9 billion by 2028. This much brighter outlook hinges on powerful AI infrastructure demand and continued expansion, so it’s worth considering how shifts in customer reliance or industry trends could dramatically change the picture. Your interpretation of the risks and upside potential matters, so explore several viewpoints before deciding.

Explore 18 other fair value estimates on Arista Networks - why the stock might be worth just $113.17!

Build Your Own Arista Networks Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arista Networks research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Arista Networks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arista Networks' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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