We just covered the 12 Best AI Data Center Stocks to Buy Right Now and Arista Networks, Inc. (NYSE:ANET) ranks 3rd on this list.
Arista Networks, Inc. (NYSE:ANET) has been one of the standout winners of the Networking War that defines the 2026 AI data center business. The primary reason that elite investors are piling into the stock is the industry-wide shift from proprietary InfiniBand, dominated by NVIDIA, to Open Ethernet. As AI clusters move from thousands to millions of GPUs, InfiniBand hits structural and cost limits. Arista’s Etherlink products are becoming the gold standard for these massive clusters. In early 2026, the company officially doubled its AI networking revenue target to $3.25 billion for the year. This signaled to Wall Street bigwigs that the transition to Ethernet is happening significantly faster than predicted.
READ MORE: 15 Best Stocks to Buy According to Billionaire Ray Dalio.
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Arista Networks, Inc. (NYSE:ANET) currently trades at a premium with a Forward P/E of around 50x. However, many prominent investors still view it as a Forever Stock because of its operating leverage. Unlike competitors, Arista can grow revenue by 30% while barely increasing its overhead, thanks to the efficiency of its EOS software. With 1.6T systems emerging in mid-2026, Arista’s EOS is viewed as the only software stack capable of managing the sub-nanosecond latency required for next-generation AI workloads. The company has become the architect of the trillion-parameter AI era. If a business wants to build a million-GPU cluster in 2026, they are likely using Arista switches to ensure those GPUs can actually talk to each other.
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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