Cloud Companies Will Spend Billions on AI. Buy Arista Networks Stock.

Arista Networks shares are getting a post-earnings boost, aided by a bullish call from Morgan Stanley analyst Meta Marshall, who sees the company getting a big boost from AI-driven data-center buildouts.

In a research note Monday, Marshall lifted her rating on Arista shares to Overweight from Equal Weight. She raised her target for the stock price to $220, from $185. Marshall sees Arista as the best way to take advantage of “the $25 billion AI networking market.” In particular, she sees Arista benefiting from the adoption of Ethernet networking in data centers, replacing a competing networking standard called Infiniband.

Marshall said that the ethernet-networking opportunity is largest with cloud providers, where the company already has a strong relationship. Microsoft and Meta Platforms are the company’s largest customers, together accounting for more than 40% of revenue in the most recent fiscal year.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Earnings Show Growth in Public Cloud MarketSteve McDowell is principal analyst and founding partner at NAND Research. Steve is a technologist with over 25 years of deep industry experience in a variety of strategy, engineering, and strategic marketing roles, all with the unifying theme of delivering innovative technologies into the enterprise infrastructure market.
La source: ForbesTech - 🏆 318. / 59 Lire la suite »