Arista Networks, Inc. (NYSE: ANET) remains one of the purest ways to invest in AI data‑center infrastructure. On 29 November 2025, fresh 13F filings, insider transactions, and new analyst commentary are giving investors an updated view of where this high‑growth networking stock might go next.
Arista Networks Stock Snapshot: Price, Performance and Valuation
Arista Networks has been on a powerful multi‑year run as cloud and AI data‑center demand exploded. According to recent analysis republished by Nasdaq, Arista’s share price is “around $125,” down from an all‑time high near $165 set in late October. The stock is still up about 13% year to date, roughly 25% over the past 12 months, and an astonishing ~642% over five years. [1]
Other data providers put the recent trading level slightly higher: an insider‑trading report from Investing.com cites a last price of $130.68 and a market capitalization of roughly $164.6 billion, implying a price/earnings ratio just under 50. [2] Despite small discrepancies in precise share price depending on timestamp, the message is the same: Arista is a large‑cap growth stock that has already re‑rated substantially.
Valuation is front and center. The Motley Fool notes the stock is trading around 55 times earnings, versus an average tech sector multiple near 39. [3] MarketBeat’s institutional‑flow coverage pegs Arista’s trailing P/E in the low‑50s and a PEG ratio above 3, underlining that investors are paying a premium for growth. [4] Simply Wall St likewise characterizes Arista as richly valued after strong earnings, pointing out that the stock has slid about 18.6% over the last month even though it’s still up roughly 27% over the past year and 266% over three years. [5]
In short: ANET remains expensive relative to the market, but that premium is backed by exceptional growth and a deep AI narrative.
Q3 2025: Another Big Beat Powered by AI Data Centers
Arista’s latest numbers help explain why investors have been willing to accept that premium.
For the third quarter of 2025 (ended 30 September), Arista reported: [6]
- Revenue of $2.308 billion, up 27.5% year over year and 4.7% sequentially
- GAAP net income of $853 million, or $0.67 per diluted share
- Non‑GAAP net income of $962.3 million, or $0.75 per diluted share, up 25% year over year
- GAAP gross margin of 64.6% and non‑GAAP gross margin of 65.2%
These figures modestly beat Wall Street expectations on both revenue and earnings. [7] Arista’s margins remain unusually high for a hardware‑centric business, helped by its software‑driven EOS (Extensible Operating System) platform and focus on high‑value cloud and AI customers.
Management’s guidance keeps the growth story intact but hints at some normalization:
- Q4 2025 revenue guidance: $2.3–$2.4 billion
- Expected non‑GAAP gross margin: 62–63%
- Expected non‑GAAP operating margin: 47–48% [8]
Zacks / Nasdaq coverage extrapolates that to full‑year 2025 revenue around $8.87 billion, up roughly 26–27% year over year, and a 2026 revenue target of about $10.65 billion, or ~20% growth. [9]
Meanwhile, long‑form analysis from The Next Platform digs into the AI mix: Arista expects around $1.5 billion of AI back‑end and front‑end network revenue in 2025, roughly 16.5% of total sales, rising to about $2.75 billion in 2026, or ~25.8% of an expected $10.65 billion in revenue. [10] That underscores how fast AI networking is becoming a central driver of the business.
AI Networking Roadmap: 800G R4 Platforms and an Expanding Ecosystem
The latest Motley Fool piece, syndicated on Nasdaq, argues that Arista’s investment case hinges on its role as an AI infrastructure supplier, especially its 400G/800G Ethernet switches and routers tightly integrated with EOS. These systems have become go‑to choices for hyperscalers and AI data‑center builders that need ultra‑low latency, massive bandwidth, and highly programmable fabrics. [11]
On 29 October 2025, Arista announced its next‑generation R4 Series platforms, a family of 800G‑class routers and systems designed for AI data centers, DC interconnect, and large routed backbones. The company highlighted a dense 800Gbps R4 system with innovative 3.2 Tbps “HyperPorts” to support extremely large distributed AI workloads while reducing total cost of ownership and power consumption. [12]
In the same release and related ecosystem commentary, Arista and its partners emphasized: [13]
- Explosive growth in the 800GbE market, with port shipments more than tripling sequentially in Q2 2025
- Arista’s leading branded market share in data‑center Ethernet switching at 800G speeds
- Enhanced security via TunnelSec (MACsec, IPsec, VXLANsec) across the new platforms
- Participation in the Ethernet for Scale‑Up Networks (ESUN) initiative for open, standards‑based AI scale‑up solutions
- A deepening partnership with Palo Alto Networks around AI‑era security and visibility
This product and ecosystem roadmap is a big part of why many analysts see Arista as a long‑term winner in AI networking—even if its shares occasionally wobble around earnings or macro headlines.
29 November 2025: Institutions Rotate but Stay Heavily Exposed
The freshest news on 29 November 2025 is not about new products, but about who owns Arista stock.
A wave of Form 13F‑related articles on MarketBeat highlights how institutional investors repositioned their Arista holdings in the second quarter of 2025, with those moves only now being disclosed:
- Schroder Investment Management Group increased its position by 14.8%, buying 1,350,593 additional shares to reach 10,494,124 shares, worth about $1.07 billion at the time of the filing. Arista is now roughly 0.9% of Schroder’s portfolio and its 19th‑largest position. [14]
- Scotia Capital Inc. boosted its stake by 64.2% to 91,675 shares, valued around $9.38 million. [15]
- Level Four Advisory Services LLC raised its holdings by 440.4%, adding 36,630 shares to reach 44,948 shares worth about $4.6 million. [16]
- West Family Investments Inc. initiated a new position, buying 8,288 shares valued at approximately $848,000. [17]
Not all flows were positive:
- Groupama Asset Management cut its stake by 17.7%, selling 11,365 shares and ending the quarter with 52,719 shares worth about $5.24 million. [18]
- Giverny Capital Inc. reduced its holdings by 48.3%, selling 450,495 shares and finishing with 482,561 shares worth roughly $49.4 million, even though Arista still represents around 1.7% of its portfolio. [19]
Across several of these reports, MarketBeat notes that approximately 82% of Arista’s float is held by hedge funds and other institutional investors, underscoring how crowded the name has become among professional money managers. [20]
Taken together, the 29 November batch of disclosures suggests continued institutional conviction in Arista’s AI networking story, but also some profit‑taking by long‑time holders after a huge multi‑year run.
CEO Insider Sale: What Jayshree Ullal’s $3 Million Trade Really Means
Also hitting the tape around 29 November is news that CEO and Chairperson Jayshree Ullal sold a notable block of Arista stock.
According to Investing.com and a detailed Form 4 summary on StockTitan: [21]
- On 25 November 2025, Ullal sold 24,042 shares of ANET at weighted‑average prices between $123.198 and $125.6238, for total proceeds of roughly $3.0 million.
- The trades were executed under a pre‑arranged Rule 10b5‑1 trading plan adopted on 13 December 2024, meaning they were scheduled in advance rather than timed opportunistically.
- After the sale, she still directly owns 9,917 shares, and indirectly has exposure to more than 29 million shares held across various family trusts and vehicles where she serves as co‑trustee.
Investing.com notes that despite this insider sale, Arista maintains more cash than debt and scores very highly on financial health metrics, even as some valuation models flag the stock as overvalued at a P/E near 50. [22]
For investors, the critical nuance is that 10b5‑1 plans are routine tools executives use to diversify their wealth and manage liquidity on a schedule, often to avoid accusations of trading on non‑public information. The sheer scale of Ullal’s remaining direct and indirect holdings suggests continued long‑term alignment with shareholders, even as she trims exposure at elevated prices.
Analyst and Market Views: Rich, but Still an AI “Infrastructure Winner”?
The latest syndicated Motley Fool analysis poses the question embedded in its headline: “Arista Networks Stock Has Soared, but Is the AI Networking Thesis Still Valid?” [23] The article answers “yes, with caveats,” citing:
- Arista’s entrenched position in AI data centers thanks to its 400G/800G switches and EOS software platform
- Strong Q3 results, with revenue up around 28% and EPS rising from $0.58 to $0.67 year over year
- Management’s guidance for Q4 revenue of $2.3–$2.4 billion, which would be roughly 19% higher vs. last year, even if sequential growth flattens [24]
But it also flags risks:
- ANET trades on a “rich” multiple (about 55x earnings), making it vulnerable to pullbacks if AI spending slows
- There are signs of investor skepticism in the broader AI complex, with high‑profile voices such as Alphabet CEO Sundar Pichai calling parts of AI capex “irrational,” and criticism of rising AI budgets at companies like Meta. [25]
Simply Wall St similarly notes that while Arista is executing well, a cautious outlook from management has already knocked about 18% off the share price over the last month, even as long‑term returns remain robust. [26]
On the more quantitative side:
- Zacks currently assigns Arista a Rank #3 (Hold), reflecting solid fundamentals but less near‑term upside in its model after the big run. [27]
- A GuruFocus ratings note from earlier in November highlights a Neutral stance with a price target around $140, again underscoring that valuation is a key debate rather than execution. [28]
- A Trefis breakdown attributes roughly 45% share‑price appreciation between 29 May and 25 November chiefly to P/E multiple expansion and strong earnings beats, while reminding investors that ANET has historically been quite volatile during market corrections. [29]
The consensus tone: Arista is a high‑quality AI networking leader, but not a bargain.
Key Upside Drivers and Risks to Watch
For readers following ANET stock after the 29 November 2025 news cycle, here are the key themes to monitor—without telling you what to buy or sell:
Bullish Drivers
- Structural AI tailwind: Management and independent analysts alike expect AI networking to become a much larger slice of Arista’s business, potentially exceeding a quarter of revenue by 2026 if the company hits its AI revenue targets. [30]
- Product leadership at 800G and beyond: The new R4 series and 800G‑optimized platforms position Arista to capture the next wave of AI and cloud build‑outs, where bandwidth and latency are critical. [31]
- Exceptional margins and balance sheet: Arista’s mid‑60s gross margins, high‑30s to high‑40s operating margins, and multi‑billion‑dollar cash pile give it significant flexibility to invest in R&D, buybacks, and new product categories. [32]
- Deep relationships with hyperscalers and cloud titans: The company is already a key partner for some of the largest cloud and AI operators, and it continues to participate in industry efforts like ESUN and security partnerships with firms such as Palo Alto Networks. [33]
Risks and Pressure Points
- Valuation risk: With P/E ratios hovering around 50–55x and a PEG ratio above 3 on some metrics, even small disappointments in growth or margins could trigger sharp drawdowns. [34]
- AI capex cyclicality: If AI infrastructure spending proves “lumpier” or more cyclical than expected—especially after concerns from large platforms about capex intensity—Arista’s top line could be more volatile than today’s smooth guidance suggests. [35]
- Competitive intensity: Arista faces fierce competition from Cisco, Juniper (now under HPE), and even chip vendors like Broadcom and Nvidia that could bundle silicon, optics, and networking solutions in ways that pressure Arista’s margins over time. [36]
- Insider and institutional selling optics: While the CEO’s 10b5‑1 sales and some institutional profit‑taking are not inherently bearish, they reinforce the perception that ANET is no longer an undiscovered value play.
Bottom Line
As of 29 November 2025, Arista Networks stands at an interesting crossroads:
- Operationally, it’s executing extremely well, riding the AI networking wave with industry‑leading products, strong margins, and robust guidance. [37]
- In the market, it trades at a premium valuation, with institutional investors both adding and trimming positions, and insiders carefully managing exposure through pre‑planned sales. [38]
- Strategically, its deep entrenchment in AI data centers makes it one of the clearest “picks and shovels” plays on the long‑term AI megatrend—but also makes it sensitive to any pullback in AI capex.
For growth‑oriented investors tracking ANET stock news on Google News and Discover, the most recent disclosures show that big money largely remains on board, even as some long‑time holders take profits and the CEO prunes her stake under a scheduled plan. Understanding that balance between explosive AI‑driven opportunity and valuation‑driven volatility is likely to remain central to how the market prices Arista Networks in the months ahead.
This article is for informational purposes only and does not constitute financial or investment advice.
References
1. www.nasdaq.com, 2. m.in.investing.com, 3. www.nasdaq.com, 4. www.marketbeat.com, 5. simplywall.st, 6. investors.arista.com, 7. www.gurufocus.com, 8. investors.arista.com, 9. www.nasdaq.com, 10. www.nextplatform.com, 11. www.nasdaq.com, 12. www.arista.com, 13. www.arista.com, 14. www.marketbeat.com, 15. www.marketbeat.com, 16. www.marketbeat.com, 17. www.marketbeat.com, 18. www.marketbeat.com, 19. www.marketbeat.com, 20. www.marketbeat.com, 21. m.in.investing.com, 22. m.in.investing.com, 23. www.nasdaq.com, 24. www.nasdaq.com, 25. www.nasdaq.com, 26. simplywall.st, 27. www.nasdaq.com, 28. www.gurufocus.com, 29. www.trefis.com, 30. www.nextplatform.com, 31. www.arista.com, 32. investors.arista.com, 33. investors.arista.com, 34. www.nasdaq.com, 35. www.nasdaq.com, 36. www.nextplatform.com, 37. investors.arista.com, 38. www.marketbeat.com
