Why Arista Networks Stock Flew More Than 4% Higher on Friday
Written by Eric Volkman for The Motley Fool -> She also kept her unambiguous buy recommendation intact. The company continues to do well selling into the lucrative AI market. Tech networking equipment company Arista Networks (NYSE: ANET) is going into the weekend on a high not
The company continues to do well selling into the lucrative AI market.
Tech networking equipment company Arista Networks (NYSE: ANET) is going into the weekend on a high note. Its stock zoomed more than 4% higher on Friday, thanks to a new, bullish note from an analyst at an influential investment bank.
Before market open, Meta Marshall of Morgan Stanley raised her price target on Arista to $190 per share from $180. In doing so, the analyst maintained her overweight (read: buy) recommendation on the specialty tech stock.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
According to reports, Marshall's adjustment is based on her view that since many artificial intelligence (AI) implementations have reached the inference -- i.e., implementation -- stage, as opposed to the training phase, next-generation equipment makers are well positioned to benefit handsomely.
This also applies to what the pundit termed "CPU intensity," as more processing power is needed for the effective functioning of AI models.
If anything, Marshall might be understating the case and underestimating Arista's potential. The company is not only a trusted supplier in its cloud networking segment but one that's about to ride a very large wave as AI implementations continue to scale up. This is a very attractive company and stock at the moment, and this price target bump is more than justified.
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arista Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
