Arista Networks
Long

Arista Networks Raises 2025 Revenue Forecast to $8.2B

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Arista Networks, Inc. (NYSE: ANET) has increased its 2025 revenue outlook to $8.2 billion, marking a 17% year-over-year growth rate. This revision is driven by robust demand from Tier 1 hyperscalers and Tier 2 cloud providers adopting Ethernet-based solutions. For Q1 2025, the company expects revenue between $1.93 billion and $1.97 billion, with a gross margin around 63% and operating margin of 44%.

Arista specializes in data-driven networking solutions for cloud, data center, campus, and routing infrastructures. Although it lagged in AI revenue growth initially, the company now benefits from broader AI and cloud integration. UBS has given the stock a Buy rating, targeting a price of $115. At market close on April 17, 2025, ANET traded at $71.20, reflecting a 0.93% decline for the day. Volume reached 8.57 million shares.

Meanwhile, market sentiment remains cautious due to new trade tariffs imposed by the Trump administration. These policies, particularly against Chinese imports, have disrupted global supply chains and triggered inflationary pressure. As a result, hedge funds reduced risk exposure ahead of the announcement. Market research from IDC warns that prolonged tariffs could impact the IT sector’s recovery and limit hardware availability.

Technical Analysis

On the 3-day chart, ANET has dropped below the key support-turned-resistance level around $77. The price currently sits around the 200-day moving average, acting as a crucial short-term support zone. The current 50-day moving average stands at $98.45, while the 100-day and 200-day moving averages are $87.99 and $65.96, respectively.

The chart outlines two possible scenarios: a breakout above $77 could send the price toward the $88 level; otherwise, a rejection here may pull the price back to the $60 support range. Volume spikes indicate active participation near current levels.

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