Arista Networks Inc (NYSE:ANET) is one of the 10 AI Stocks Making Waves on Wall Street. On June 25, Evercore ISI analyst Amit Daryanani reiterated an “Outperform” rating on the stock with a $110.00 price target. The firm considers Meta’s two-layer scheduled fabric architecture for back-end networks to be a significant opportunity for Arista.

It is expected that both Meta and Oracle will increase deployment of the Arista-centric two-layer approach in the second half of this year, utilizing Broadcom’s Jericho and Ramon chipsets instead of Tomahawk.

A software engineer debugging a complex communications infrastructure.

According to the firm, Arista accounts for an estimated 30% of spend in the three-layer architecture versus 100% in the two-layer approach. It is further expected that Arista will secure about 30% of back-end cloud networking spend, driving “outsized growth in CY25 and beyond.”

CY25 guidance updates, OCP announcements from Meta, and Meta revenue percentage disclosure anticipated during fourth-quarter earnings are three catalysts identified by the firm for Arista.

Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.

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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Disclosure: None.