Jim Cramer Bets on Jayshree Ullal as Arista Networks Inc. (ANET) Faces Data Center Negativity

We recently published a list of Jim Cramer Discussed These 9 Stocks Recently. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other stocks that Jim Cramer discussed.

On Wednesday, Jim Cramer, the host of Mad Money, took a closer look at the state of the market and the stocks that saw gains and losses that day.

“It’s time to praise the winners, the ones that don’t need to wait until April 2nd to find out whether their business will be slammed by tariffs when President Trump announces whose earnings will be cut and who stay the same in a host of industries because tariffs are like taxes and they can cut deep into profits. Today, it all came together even as the averages got hit.”

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He noted that Wall Street, for the most part, chose to rally around domestic companies, especially those in the service sector. The trend, according to Cramer, made sense after the president revealed a 25% tariff on all cars made outside the U.S. The news came after the market closed, and while some had anticipated tariff increases, few had expected such a severe measure.

Cramer noted that he even predicted earlier in the day that it might happen, but he did not find many who agreed with him. Now, with a new tariff on 7.38 million cars coming into the U.S., he suggested it would create a significant disruption in the global market, possibly starting that very evening. Despite the uncertainties caused by these new tariffs, Cramer pointed out that there could still be winners in such a situation once the dust settles. He referenced the S&P leaderboard, highlighting stocks that had shown resilience. He added:

“I bet the data center build-out continues to pace, but very few people believe right now in my view. We’re in a curious moment here where any reassurances that the industrial revolution of AI is still on just won’t cut it. Every single stock in the sector is being mauled by the bears.”

Our Methodology

For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 26. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Arista Networks Inc (NYSE:ANET)

Number of Hedge Fund Holders: 78

Noting that Arista Networks Inc (NYSE:ANET) is part of the “data center story”, Cramer remarked:

“Now what happened in the service side here that was actually difficult was Super Micro. They provide hardware, but they also provide services. They, along with Arista Networks and Broadcom, they were all part of the data center story that people seem to have cooled on.”

Arista Networks (NYSE:ANET) provides advanced networking solutions designed for data centers, campuses, and routing, focusing on AI-driven switches and software built for automation, monitoring, and security. It is worth noting that Cramer was recently bullish on ANET as he said on March 13:

“No, Arista’s been an amazing stock for many years and that’s because Jayshree Ullal is such a fantastic executive. Right now, it’s caught up in the data center negativity. At this point, this stock is now down 50 straight points. I’m gonna bet on Jayshree here. I would buy it.”

Overall, ANET ranks 7th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.