Here’s What Makes Arista Networks (ANET) an Investment Bet?

3 days ago 5

Soumya Eswaran

Thu, January 8, 2026 astatine 7:15 AM CST 3 min read

ClearBridge Investments, an concern absorption company, released its “ClearBridge Large Cap Growth Strategy” fourth-quarter 2025 capitalist letter. The concern doctrine of the strategy is to put successful starring companies that are undervalued by the marketplace successful presumption of their aboriginal maturation potential. A transcript of the missive tin beryllium downloaded here. Large-cap stocks continued their spot successful the quarter, driven by beardown net maturation from mega-cap companies and enthusiasm implicit generative AI. The ClearBridge Large Cap Growth Strategy underperformed the Russell 1000 Growth Index by astir 900 ground points for the year. It continued to lag down the benchmark, trailing its 1.2% quarterly beforehand by astir 170 ground points during the 4th quarter. The underweight vulnerability to mega-cap AI beneficiaries and lower-quality AI-related names contributed to the underperformance. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, ClearBridge Large Cap Growth Strategy highlighted stocks specified arsenic Arista Networks, Inc. (NYSE:ANET). Arista Networks, Inc. (NYSE:ANET) is simply a exertion institution that engages successful the improvement and organisation of data-driven, client-to-cloud networking solutions. The one-month instrumentality of Arista Networks Inc (NYSE:ANET) was -3.21%, and its shares gained 12.61% of their worth implicit the past 52 weeks. On January 7, 2026, Arista Networks, Inc. (NYSE:ANET) banal closed astatine $130.08 per share, with a marketplace capitalization of $163.808 billion.

ClearBridge Large Cap Growth Strategy stated the pursuing regarding Arista Networks, Inc. (NYSE:ANET) successful its 4th fourth 2025 capitalist letter:

"We initiated a presumption in Arista Networks, Inc. (NYSE:ANET), a supplier of high-speed switches and networking instrumentality captious to enabling the cognition of unreality platforms and information centers. Arista is good represented among the hyperscalers and benefits from that capex cycle. In the endeavor business, Arista presently has debased stock but is poised to proceed gaining arsenic companies update their field networking infrastructure."

“I Don't Understand Why It's Down This Much”

Arista Networks, Inc. (NYSE:ANET) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 92 hedge money portfolios held Arista Networks, Inc. (NYSE:ANET) astatine the extremity of the 3rd quarter, which was 81 successful the erstwhile quarter. In the 3rd 4th of 2025, Arista Networks Inc (NYSE:ANET) reported revenue of $2.3 billion, up 27.5% year-over-year, exceeding expectations. While we admit the imaginable of Arista Networks, Inc. (NYSE:ANET) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.