Arista Networks Inc (ANET): A Bull Case Theory

We came across a bullish thesis on Arista Networks Inc on techcache’s Substack by Joe Albano. In this article, we will summarize the bulls’ thesis on ANET. Arista Networks Inc's share was trading at $130.68 as of November 28th. ANET’s trailing and forward P/E were 49.69 and 39.53 respectively according to Yahoo Finance.

Arista Networks Inc engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.  ANET enters its upcoming earnings release at a critical technical juncture, with the stock pressing against a well-defined resistance zone as it completes the upper end of a third-wave advance. This positioning, combined with elevated expectations following the company’s significant guidance raise last quarter, sets the stage for a likely short-term pullback.

While Arista continues to benefit from accelerating AI networking demand across both front-end and back-end infrastructure, the market may hesitate to reward another solid quarter if the company refrains from issuing another substantial guidance increase heading into year-end. This dynamic aligns with the stock’s technical setup, where a five-wave rally typically sees the third wave of the third wave stall near the 100% to 123.8% Fibonacci extension range before retracing toward support.

Given that shares have already reached the upper boundary of this target zone, support is expected to form closer to the 78.6% extension around $126 rather than the deeper 61.8% level. A measured three-wave pullback to this region would allow the stock to reset, establishing a durable base before resuming its broader uptrend. From there, the next move higher is projected to carry Arista toward approximately $193 during wave circle v of 3, supported by renewed momentum and continued strength in AI-driven demand.

Ultimately, the full completion of the multi-wave structure points toward a target range of $227 to $235, where multiple Fibonacci levels converge. Reaching this zone will likely require two additional corrective phases—circle iv of 3 and then wave 4—before the stock completes its next major leg higher.

Previously we covered a bullish thesis on Arista Networks Inc by Charly AI in April 2025, which highlighted strong AI-driven networking growth, solid financials, and long-term resilience despite a major pullback. The company's stock price has appreciated by 88% since our coverage. This is because the thesis played out. The thesis still stands as structural AI demand remains strong. Joe Albano shares a similar view but emphasizes technical resistance and a near-term pullback.

Arista Networks Inc is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held ANET at the end of the second quarter which was 75 in the previous quarter. While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.