Arista Networks (ANET)

Arista Networks is the industry leader in high-speed Ethernet switches and software used to build the networking fabric inside AI data centers. As AI training clusters scale to tens of thousands of GPUs, the network connecting those GPUs becomes a critical performance bottleneck. Arista's 400G and 800G Ethernet switches — powered by its Extensible Operating System (EOS) — are deployed by Meta, Microsoft, and other hyperscalers to connect their massive AI compute infrastructure. The company has consistently gained market share from Cisco in the data center switching market.

Arista's AI networking opportunity is substantial and growing. The company introduced its Etherlink AI platform specifically designed for GPU cluster connectivity, competing with NVIDIA's InfiniBand networking. While InfiniBand has historically dominated AI training networks, the industry is increasingly shifting toward Ethernet-based solutions for their cost advantages and open ecosystem. Arista estimates its addressable market for AI networking alone exceeds $5 billion annually and is growing rapidly. With gross margins above 60% and a capital-light business model, Arista generates exceptional free cash flow while riding the AI infrastructure buildout.