For me, Arista is currently one of the most exciting tech stocks away from the big hype names. While the whole world is watching Nvidia, Arista is providing the infrastructure in the background so that the data streams can flow at all - whether in the data center, in the cloud or in AI-optimized networks in the future. And this is precisely where the appeal lies: Arista doesn't sell the show - it builds the stage.
Of course, the share price has fallen considerably since its high in January - down almost 45%. But let's be honest: fundamental weakness looks different. The company continues to grow, earns a decent amount and, with a P/E ratio of just over 45, is anything but overpriced for a premium tech stock - especially when you consider the growth opportunities.
What I particularly like is that Arista is positioning itself strongly in the field of AI infrastructure. While many companies are still writing concepts, Arista is already delivering ready-to-use solutions. This is not only future-proof, but also pretty smart. Cloud providers are among its biggest customers - including big names such as Microsoft and Meta.
In short: Arista is a hidden champion in the background of the AI boom. Anyone who believes in the cloud, data centers and AI should consider looking at the companies that provide the foundation for it. For me, this is a long-term quality stock - and after the correction, the entry looks quite interesting.
