Arista Networks hits record high as Trump unveils massive AI investment plan

Arista Networks

22/01/2025 18:05

** Shares of cloud computing provider Arista Networks  ANET.N  rise 7% to $130.49, hitting a
record high after U.S. President Donald Trump unveiled a $500 billion private sector investment
plan to fund AI infrastructure
    ** ANET on track for its six straight session of gains
    ** Even if the project falls short of its target, it should still provide a boost to vendors
including ANET, Ciena  CIEN.N , Coherent  COHR.N  and Lumentum  LITE.O , Jefferies analysts led
by George Notter said in an investor note
    ** "We understand that OpenAI/Microsoft  MSFT.O  is the "technology lead." That's great for
Arista given their incumbency at Microsoft (and Oracle  ORCL.N  too)," Notter added
    ** CIENA is up 5%, COHR is up 4%, and LITE is up 3%
    ** Among the 25 analysts that cover ANET, the breakdown of recommendations are 20 "strong
buy" or "buy," 4 "hold" and 1 "sell" or "strong sell." Its median PT is $115, per data compiled
by LSEG
    ** ANET is up ~18% YTD after gaining ~88% in 2024

 (Reporting by Chibuike Oguh in New York)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters Messaging:
chibuike.oguh.thomsonreuters.com@reuters.net))