Shares in Arista Networks (Anita) decreased for the second day after Nvidia (NVDA) announced it oracle (ORCL) and Meta platforms (dead) will use its Spectrum-X Ethernet networking devices in next-generation data centers for artificial intelligence computing. Arista stock is up about 33% in 2025 but has pulled back from the record high it hit last week.
Nvidia announced Monday that OpenAI and Meta will do just that Adopting its own Ethernet network architecture For artificial intelligence data centers.
It was Arista’s largest customer for computer network switches Microsoft (MSFT) And Facebook’s father is dead. Oracle has been looked at as a potential new customer. Oracle has signed massive AI infrastructure deals with OpenAI and others.
Battle of artificial intelligence networks
Both Arista and Nvidia are targeting an emerging market for “back-end” Ethernet networking technology that connects clusters of AI servers in cloud computing data centers. Nvidia is bundling its Spectrum-X network hardware with AI accelerators, giving it an effective marketing strategy. Nvidia also makes InfiniBand networking chips embedded in high-performance PCs.
At an analyst day in September, Arista expected revenue to grow 20% in fiscal 2026 to $10.5 billion, slightly above consensus estimates. Arista also expects its AI network revenue to grow 70% in 2026 to about $2.75 billion, compared to $1.5 billion this year.
Third-quarter earnings for Arista stock are scheduled to be released on November 4. The company may update the guidance.
Arista sells computer network adapters that speed up connections in Internet data centers. Moreover, its main competitors are Cisco Systems (cisco) and Hewlett-Packard companies (HPE), which acquired Juniper Networks. Another competitor is the contract manufacturer Celestica (CLS).
Arista Stock extends the slide
on Stock market todayArista stock fell 5.8% to near 139 in morning trading, partly due to the broader market decline. Arista stock fell 4.3% on Monday, despite the Nasdaq Composite index rebounding 2.2%. Arista stock reached a record high of 162.68 in intraday trading on October 10 before falling lower.
Shares are now approaching the 10-week and 50-day lines. Arista among AI stocks to watch.
Meanwhile, Nvidia stock rose 2.8% to 188.32 on Monday, returning to the buy zone. Nvidia stock is up 36% in 2025.
Arista Technical Evaluations
ANET stock carries the best possible IBD Composite Rating of 99, according to IBD inventory check. The IBD Composite Classification combines five separate special classifications into one easy-to-use classification. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, Arista stock has a B Accumulation/Distribution rating, according to IBD MarketSurge analysis. This rating indicates heavy institutional buying of ANET shares.
Follow Reinhardt Krauss on X, formerly Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.
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