Arista Networks (NYSE: ANET) has seen its stock decline approximately 27% from its all-time high closing price of nearly $130 on January 21. As of June 4, however, the company has experienced a significant recovery since late March, despite concerns over competition from NVIDIA, which is gaining some of Arista’s key customers, including Google Cloud and Meta Platforms.
Arista reported sales growth exceeding 25% in its financial results for 2025, although analysts project a drop in adjusted operating margins from 47.5% to around 45% due to potential tariffs on supplies from Vietnam and Malaysia, which are set to expire on July 9. Analysts have recently raised their price targets for Arista, with an average target just under $106, indicating an upside of around 11% from the June closing price.
Despite tariff uncertainties and mounting competition, Arista’s long-term prospects remain optimistic, bolstered by a partnership with Broadcom and the expansion of the Ethernet market, which could enhance its technological positioning.
