Arista Networks, Inc. (NYSE:ANET) is one of the 10 Best Stocks to Invest In According to Billionaire Steve Cohen.
Arista Networks, Inc. (NYSE:ANET) is a relatively recent addition to the 13F portfolio of Point72 Asset Management. The fund first disclosed a stake in the company back in the fourth quarter of 2024. This position comprised 3 million shares. By the second quarter of 2025, this had grown to nearly 7 million shares. After trimming the holding by 20% in the third quarter of 2025, the hedge fund added 37% to it in the fourth quarter of 2025. At the end of last year, the fund owned nearly 7.6 million shares in the networking company.
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The most significant driver for institutional buying of Arista Networks, Inc. (NYSE:ANET) stock is the industry-wide move toward open-source Ethernet for backend AI networking. Historically, NVIDIA’s proprietary InfiniBand was the only choice for connecting GPUs. However, hedge funds are betting that hyperscalers like Meta, Microsoft, and Google are switching to Arista’s high-speed Ethernet to avoid vendor lock-in and lower their total cost of ownership. With the launch of the 7800R4 series, Arista has proven that Ethernet can now match InfiniBand’s low latency while supporting clusters of over 100,000 GPUs. As AI data centers hit power and heat limits, Arista is also winning contracts through superior hardware engineering. The firm introduced XPO Liquid-Cooled Optics in March 2026. This module addresses the extreme heat generated by 800G and 1.6T networking.
While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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