JPMorgan analysts maintained an Overweight rating on Arista Networks (NYSE:ANET) with a $140 price target, adding the stock to the Analyst Focus List as a compelling growth opportunity following its recent pullback.
The decline in Arista’s stock has been driven by concerns over AI-related spending cuts from cloud providers and potential market share losses to white-box competitors. However, JPMorgan believes these risks are overstated and unlikely to significantly impact Arista’s long-term growth trajectory.
Currently, Arista shares are trading at 28x projected 2026 earnings, which, while not at a deep discount, still leaves room for substantial upside. The firm sees multiple growth catalysts, including stronger-than-expected earnings in 2025 and accelerating revenue growth in 2026 and 2027, fueled by rising Ethernet adoption in AI data centers and increasing customer demand for Ethernet-driven AI infrastructure.
With earnings momentum and valuation expansion potential, JPMorgan views Arista as well-positioned for long-term gains.
