Arista Networks, Inc. (ANET), headquartered in Santa Clara, California, develops, markets, and sells data-driven, client to cloud networking solutions for data center, campus, and routing environments. Valued at $118.7 billion by market cap, the leading tech company offers ethernet switches, pass-through cards, transceivers, and enhanced operating systems. It also provides host adapter solutions and networking services. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and ANET perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the computer hardware industry. 

Despite its notable strength, ANET slipped 29.3% from its 52-week high of $133.58, achieved on Jan. 24. Over the past three months, ANET stock gained 9.9%, outperforming the Dow Jones Industrials Average’s ($DOWI) 1.6% dip during the same time frame.

In the longer term, shares of ANET declined 14.5% on a YTD basis, underperforming DOWI’s YTD marginal losses. However, the stock climbed 27.5% over the past 52 weeks, outperforming DOWI’s 10.2% returns over the last year.

To confirm the slight bearish trend, ANET has been trading below its 200-day moving average since late February. However, the stock is trading above its 50-day moving average since early May. 

ANET’s strong performance can be attributed to advancements in AI and technology, which have led to increased productivity and improved network performance. The company's scalable and programmable portfolio, along with its focus on data-driven automation, analytics, and support services, has also contributed to its success. Additionally, ANET is benefitting from the growing demand for high-performance switching products in the expanding cloud networking market.

On May 6, ANET shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.65 surpassed Wall Street expectations of $0.59. The company’s revenue was $2 billion, topping Wall Street forecasts of $1.96 billion. For Q2, ANET expects revenue to be $2.1 billion.

ANET’s rival, Dell Technologies Inc. (DELL) shares lagged behind the stock, with a 15.3% decline over the past 52 weeks but outpaced the stock with a 2.9% loss on a YTD basis.

Wall Street analysts are moderately bullish on ANET’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $111.68 suggests a potential upside of 18.2% from current price levels.