Editor’s Note
A recent BNP Paribas analysis projects the data center networking market will grow to $120 billion by 2028. This highlights a significant opportunity for companies like Arista Networks, whose high-performance Ethernet and cloud solutions are key for meeting rising AI infrastructure demands.
According to BNP Paribas, the total addressable data center networking market is projected to reach $120 billion by 2028, positioning Arista Networks at the center of this growth opportunity with its ultra-fast Ethernet switches and cloud networking solutions that meet AI infrastructure demands.
Arista’s 400G and 800G high-speed Ethernet switching platforms are set to be widely deployed in next-generation AI cluster networks by 2025, with even faster 1.6T platforms expected in 2026, directly linking the company’s growth prospects to sustained AI spending over the next five years.
With over 20% revenue growth and more than 60% gross margins, Arista’s cash-rich balance sheet supports future expansion and investment, with revenues projected to grow from $8.9 billion in 2025 to nearly $21 billion by 2030.
Assuming the company’s price-to-sales ratio reverts to its five-year historical average of 15.4x by 2030, Arista’s market capitalization is expected to reach approximately $323 billion, an 84% increase from its current valuation, highlighting its potential as a high-quality AI company.
Wall Street analysts forecast ANET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ANET is 171.42 USD with a low forecast of 140.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company’s fundamentals.
