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Citi reiterated its buy rating and $112.00 price target on Arista Networks (NYSE: NYSE:ANET) Thursday following the company’s webinar on artificial intelligence networking. The $120 billion market cap company maintains a strong Buy consensus among analysts, with an average rating of 1.75 according to InvestingPro data.
The webinar featured a conversation with industry analyst Alan Weckel that covered expectations for the AI switching market to grow to nearly $26 billion by 2029. The discussion highlighted projections that Ethernet will surpass InfiniBand in AI switching dollars by year end and eventually move into scale up with greater XPU adoption, potentially benefiting Arista long-term.
During the presentation, Arista emphasized that customers lack a common data center design, underscoring the importance of its portfolio of more than 20 AI products and quality software stack in helping customers select appropriate AI network designs.
In a separate development that Citi noted as positive for AI networking stocks, Oracle (NYSE: NYSE:ORCL), described as a "Top 3 Tier 2 CSP & one of ANET’s AI customers," reported May-quarter capital expenditures of $9.1 billion, significantly exceeding analyst expectations of $3.7 billion.
Oracle also projected its fiscal year 2026 capital expenditures would exceed $25 billion, higher than its fiscal year 2025 figure of $21.2 billion, which Citi indicated "bodes well for the AI compute and networking stocks."
In other recent news, Arista Networks has been the subject of several noteworthy developments. Arista Networks recently held its 2025 Annual Meeting of Stockholders, where three Class II directors were elected, an advisory vote on executive compensation was approved, and Ernst & Young LLP was ratified as the independent public accounting firm. Citi analysts have increased their price target for Arista Networks to $112, citing significant market share growth in the Ethernet AI back-end sector. Redburn-Atlantic also initiated coverage with a Buy rating and a $112 price target, emphasizing Arista’s technological advantages and strategic positioning in the AI infrastructure market.
Meanwhile, Barclays (LON:BARC) adjusted its price target for Arista Networks, lowering it to $119 from $126, while maintaining an Overweight rating. Barclays highlighted Arista’s first-quarter results, which exceeded expectations, and noted the company’s optimistic outlook for 2026. Despite uncertainties around tariffs, Arista Networks has set higher-than-anticipated guidance for the second quarter. The company has expressed confidence in achieving its long-term revenue goal of $10 billion sooner than planned, with projections of substantial revenue growth in the coming years. These developments reflect a period of strategic adjustments and positive outlooks for Arista Networks.
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