Arista Networks Inc (ANET): A Bull Case Theory

We came crossed a bullish thesis connected Arista Networks Inc connected techcache’s Substack by Joe Albano. In this article, we volition summarize the bulls’ thesis connected ANET. Arista Networks Inc's stock was trading astatine $130.68 arsenic of November 28th. ANET’s trailing and guardant P/E were 49.69 and 39.53 respectively according to Yahoo Finance.

Arista Networks Inc engages successful the development, marketing, and merchantability of data-driven, lawsuit to unreality networking solutions for AI, data center, campus, and routing environments successful the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.  ANET enters its upcoming net merchandise astatine a captious method juncture, with the banal pressing against a well-defined absorption portion arsenic it completes the precocious extremity of a third-wave advance. This positioning, combined with elevated expectations pursuing the company’s important guidance rise past quarter, sets the signifier for a apt short-term pullback.

While Arista continues to payment from accelerating AI networking request crossed some front-end and back-end infrastructure, the marketplace whitethorn hesitate to reward different coagulated 4th if the institution refrains from issuing different important guidance summation heading into year-end. This dynamic aligns with the stock’s method setup, wherever a five-wave rally typically sees the 3rd question of the 3rd question stall adjacent the 100% to 123.8% Fibonacci hold scope earlier retracing toward support.

Given that shares person already reached the precocious bound of this people zone, enactment is expected to signifier person to the 78.6% hold astir $126 alternatively than the deeper 61.8% level. A measured three-wave pullback to this portion would let the banal to reset, establishing a durable basal earlier resuming its broader uptrend. From there, the adjacent determination higher is projected to transportation Arista toward astir $193 during question ellipse v of 3, supported by renewed momentum and continued spot successful AI-driven demand.

Ultimately, the afloat completion of the multi-wave operation points toward a people scope of $227 to $235, wherever aggregate Fibonacci levels converge. Reaching this portion volition apt necessitate 2 further corrective phases—circle iv of 3 and past question 4—before the banal completes its adjacent large limb higher.

Previously we covered a bullish thesis connected Arista Networks Inc by Charly AI successful April 2025, which highlighted beardown AI-driven networking growth, coagulated financials, and semipermanent resilience contempt a large pullback. The company's banal terms has appreciated by 88% since our coverage. This is due to the fact that the thesis played out. The thesis inactive stands arsenic structural AI request remains strong. Joe Albano shares a akin presumption but emphasizes method absorption and a near-term pullback.