Arista Networks Just Delivered Its First $3 Billion Quarter. Here’s What It Means for the AI Networking Trade.

Arista Networks Just Delivered Its First $3 Billion Quarter.

Here’s What It Means for the AI Networking Trade

Arista Networks (NYSE: ANET) has its first $3 billion quarter. The networking company reported second-quarter revenue of $3.036 billion on Tuesday evening, up 37.7% year over year, while non-GAAP (adjusted) earnings per share climbed about 40% to $1.02. Investors didn’t wait long to reward it.

Shares, which closed Tuesday at $190.51, pointed sharply higher in pre-market trading Wednesday as of this writing — above their previous 52-week high of $194.35. That would put the stock at its highest level in at least a year if the gain holds into the regular session. Arista sells the high-speed switches and routing platforms that move data inside artificial intelligence (AI) data centers, making it arguably one of the purest ways to invest in AI networking.