AI-focused cloud stocks Arista Networks (ANET) and CoreWeave (CRWV) have surged as investors show renewed interest in AI infrastructure, particularly following a partnership announcement with Nvidia (NVDA). CoreWeave’s stock rose by 40% over the past month, while Arista gained 10% in the same timeframe, indicating strong demand for data center capacity.
Nvidia’s investment in CoreWeave has reached approximately $2.1 billion, including a recent $2 billion equity infusion aimed at establishing AI “factories” with over 5 gigawatts of capacity by 2030. CoreWeave anticipates a 168% increase in annual sales to $5.1 billion, despite reporting an adjusted loss of $0.08 per share in its latest quarter.
Arista Networks, serving major clients like Microsoft and Meta, reported a 27% growth in Q3 revenue, amounting to $2.3 billion. The company expects FY25 sales to rise nearly 27% to $8.87 billion. Both firms are benefiting from heightened investment and robust performance metrics in the AI sector.
