Goldman Analysts Have Named This Tech Stock (ANET) As A Top Pick For 2025
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If you’re like most investors, your ear is always to the ground looking for hot stock tips. It’s hard to imagine a hotter tip than a buy recommendation from Goldman Sachs analysts for 2025. Look no further than Arista Networks Inc., which designs, builds and sells networking platforms that data centers need to function. Keep reading to learn about Arista Networks and why it’s impressing so many Wall Street analysts.
It’s no secret that Big Tech is in the middle of a proverbial gold rush. The S&P 500 Magnificent Seven is populated almost exclusively by tech companies and AI is the sector’s biggest profit driver. This explains Nvidia‘s meteoric rise from a video game chipmaker to one of the world’s most valuable companies.
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This is where Arista Networks steps into the fray. Arista helps companies develop and build networks that provide the digital infrastructure for cloud-based computing and digital operations. Both are key elements in maintaining performance at the hyperscale data centers that help AI operate at peak efficiency. According to its website, Arista has been publicly traded since 2014 and has over 10,000 clients worldwide.
Arista’s leadership team includes well-respected executives whose careers in tech stretch back several decades, such as CEO Jayshree Ullal. Ullal joined the company after a successful stint as a Senior VP at Cisco Systems, where she managed a multi-billion-dollar data center operation. Her company bio page includes a litany of honors, including U.S. Ernst and Young Entrepreneur of the Year in 2015 and being named one of the world’s best CEOs by Barron’s in 2018.
Ullal is credited with helping lead Arista’s successful IPO in 2014. Ullal works closely with Arista’s founder andreas Bechtolsheim, who still serves as the “chief architect” of its operations. Before founding Arista, Bechtolsheim was a cofounder and system architect at Sun Microsystems. Today, he oversees Arista’s advanced AI operations. He was also awarded the Ernst and Young Entrepreneur of the Year Award in 2015 with Ullal.
Under their leadership, Arista’s shares have gone from trading in the $5 range at IPO to their current price of $115.51 (per Benzinga’s stock tracker). The company’s market cap of $145.14 billion is equally impressive. The sharp upward trajectory of Arista’s stock began in the Spring of 2021 and it hasn’t looked back. Since then, it has rocketed to its current price.
That explosion in value coincides with the emergence of AI and data centers. This is how it caught Goldman’s attention. Their analysts recently raised their expectations for Arista to $120 and gave it a “Buy” rating. Goldman explained its belief in Arista by saying, “We are selectively positive on ANET and DELL as beneficiaries of the AI infrastructure demand because of their early market share leadership in AI servers and switching.”
Goldman isn’t alone in its adoration for Arista Networks; other analysts see this stock rising into the stratosphere. Benzinga’s 25 analyst panel has a consensus price estimate of $318.87 and Wells Fargo’s highest estimate was an incredible $460. It remains to be seen if Arista will hit those heights, but it’s clear that this company’s critical role in AI and data center infrastructure gives it serious growth potential.
