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We just covered the 10 Best Pick and Shovel AI Stocks to Buy for the Long Term. Arista Networks (NYSE:ANET) ranks #10 (see 5 Best Pick and Shovel AI Stocks to Buy for the Long Term).

Short Interest: 1.7%

Arista makes high-speed switches and routing systems used by major cloud players like Microsoft Azure, Meta Platforms, Amazon Web Services, and Google Cloud to connect massive server and GPU clusters. On the software side, it runs its Extensible Operating System that helps automate networks and manage traffic at scale.

The company is seeing strong demand as AI infrastructure buildouts accelerate. Its recent results showed revenue rising about 35% year over year, and it raised its full-year growth outlook to around 28% from 25%.

So why did the stock fall after the results? Expectations were high. Its Q2 guidance came in slightly below estimates, missing by roughly $200 million, which was enough to disappoint investors despite strong fundamentals.

The real driver behind Arista Networks growth is the shift in how data centers are built for AI. Unlike traditional cloud setups, AI workloads require all-to-all networking, where GPUs constantly communicate with each other. That requires high-performance switching and routing. Arista Networks operates right at this layer—its products ensure GPU clusters are fully utilized with minimal idle time. That matters because GPUs are expensive, and companies want to maximize efficiency from every unit.

While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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