Did Arista’s New Campus AI and Industrial Edge Push Just Shift Arista Networks' (ANET) Investment Narrative?

• Earlier this month, Arista Networks unveiled major enhancements to its Cognitive Campus portfolio, including the new VESPA mobility architecture, expanded AVA agentic AI capabilities, and ruggedized EOS-based switches for harsh outdoor and industrial environments, all expected to reach general availability by the first quarter of 2026.
• By applying large-scale data center networking principles to campus and industrial edge settings, Arista is aiming to support Wi‑Fi roaming domains with over 500,000 clients while enabling AI-driven, cross-domain network automation and troubleshooting.
• We’ll now examine how Arista’s expanded AVA agentic AI platform could influence the company’s broader investment narrative and long-term positioning.

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Arista Networks Investment Narrative Recap

To own Arista, you generally need to believe that high performance, software driven Ethernet will keep gaining share in AI data centers and enterprise networks, and that Arista can broaden beyond a few hyperscale buyers. The latest Cognitive Campus and AVA AI updates may modestly support that diversification catalyst, but they do not materially change the near term focus on large AI and cloud networking cycles or the key risk of customer concentration and pricing pressure.

Among the announcements, the expanded AVA agentic AI platform looks most relevant. If AVA’s multi domain event correlation and automated troubleshooting gain traction, they could deepen Arista’s software and services mix, reinforcing the catalyst around higher margin, recurring revenue while also partly offsetting competitive and white box pressures on hardware pricing.

Yet, against this backdrop of innovation, investors should still be alert to how concentrated hyperscaler spending could quickly shift if...

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 an earnings increase of about $2.1 billion from $3.3 billion today.

Uncover how Arista Networks' forecasts yield a $164.08 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were assuming roughly US$15.4 billion in revenue and US$5.9 billion in earnings by 2028, which is far more bullish than consensus. When you look at these AVA and VESPA updates through that lens, you can see how opinions on Arista’s long term AI and IoT driven demand growth can differ a lot and may shift again as this new campus and edge story unfolds.

Explore 20 other fair value estimates on Arista Networks - why the stock might be worth 10% less than the current price!

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 3 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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