DEEP DIVE Into LONG Thesis – Wiring The AI Boom

Research evidence excerpt

DEEP DIVE Into LONG Thesis – Wiring The AI Boom

Technology | IT Hardware & Networking

May 21, 2026

Arista Networks, Inc. Amit Daryanani Irvin Liu 415-800-0185 415-800-0183

ANET | $136.43 amit.daryanani@evercoreisi.com irvin.liu@evercoreisi.com

Outperform | Target Price/Base Case: $200.00 Caden Dahl Victor Santiago

Company Update 212-653-9034 212-653-9014

Caden.Dahl@evercoreisi.com Victor.Santiago@evercoreISI.com

DEEP DIVE Into LONG Thesis – Wiring The

Company Statistics

AI Boom Market Capitalization (B) $217

Shares Outstanding (M) 1,274 ALL YOU NEED TO KNOW: We view Arista as a core name for

Float (M) 1,042 investors to own as the company is uniquely positioned to solve the AI

Average 10-Day Volume (M) 7,398 Infrastructure bottleneck and bolster XPU utilization. Key points: 1)

Enterprise Value (B) $204 $150B+ Networking TAM Growing At 25%+ CAGR: We estimate

52-Week Range $82.80 - $179.80 back-end networks could be a $120B+ TAM & sustain >30% CAGR,

Fiscal Year End Dec while front-end networks at $30B TAM will sustain a high-single-digit

CAGR. ANET is uniquely positioned to win in AI networking given its

ability to deliver a scalable, unified Ethernet fabric across Scale-Up,

Earnings Summary Scale-Out, and Scale-Across architectures in a vendor-agnostic

2025 2026E 2027E manner. Arista’s EOS software stack provides a key differentiation

Revenue (M) Q1 $2,005 $2,709A $3,300 enabling operational consistency, automation, & resiliency across

Q2 $2,205 $2,804 $3,417 complex AI clusters and multi-vendor environments. 2) Positioned for

Q3 $2,308 $2,921 $3,583 30%+ Sales Growth: ANET recently raised their expectation to 20%+

Q4 $2,488 $3,073 $3,823 growth through FY28 (vs. mid-teens @ analyst day). Given tailwinds

FY $9,006 $11,508 $14,123