Arista Is a Dominant Force in High-Speed Switching and Should Benefit From Generative AI Spending

We view Arista Networks as the technology leader in high-speed switching for enterprise networking. We expect Arista to maintain its top market of high-speed ports above 100 gigabits and for it to augment its share in lower speeds and campus applications where it has historically been less penetrated. In our view, Arista’s software gives it a structural and durable competitive advantage over competitors in winning new customers, both in the cloud and in the enterprise. We believe this software-led approach provides the firm with a wide economic moat.