What Makes Arista Networks (ANET) a Good Investment?

2 hours ago 1

Soumya Eswaran

Thu, December 25, 2025 astatine 7:33 AM CST 3 min read

TCW funds, an concern absorption company, released its “TCW Concentrated Large Cap Growth Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets continued their rally successful the 3rd quarter, driven by continued optimism astir AI investments and affirmative firm earnings. Against this backdrop, the money (I share) returned +4.11% successful the 4th compared to +10.51% for the Russell 1000 Growth Index. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, TCW Concentrated Large Cap Growth Fund 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 2.44%, and its shares gained 14.06% of their worth implicit the past 52 weeks. On December 24, 2025, Arista Networks, Inc. (NYSE:ANET) banal closed astatine $130.77 per share, with a marketplace capitalization of $164.677 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding Arista Networks, Inc. (NYSE:ANET) successful its 3rd 4th 2025 capitalist letter:

"Arista Networks, Inc. (NYSE:ANET) (ANET; Information Technology; 1.32%**) Arista Networks is simply a starring precocious performance, Ethernet-focused, unreality networking provider. The company’s level uses bundle to code the needs of large-scale unreality companies, unreality work providers, and ample enterprises. EOS (Extensible Operating System) is the company’s scalable, unified bundle stack that provides a coherent diagnostic acceptable that addresses each segments of the networking market. We judge the company’s merchandise advantages (i.e. speed, azygous level consistency, unfastened standards and interoperability, scalability, simplified manageability and precocious reliability) presumption the institution good to instrumentality marketplace stock successful a rapidly expanding extremity marketplace buoyed by AI-related demand."

“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.