Arista Networks: Blowout Earnings, I'm Upgrading To A Buy

Upgrading Arista Networks to a buy as hyperscale cloud capex creates a once-in-a-generation growth opportunity, despite a high valuation. Q2 earnings were exceptional: Arista beat on all metrics and raised FY25 revenue growth guidance from 17% to 25%. Massive, multi-year data center investments by cloud giants like Microsoft, Amazon, Google, and Meta are directly fueling Arista's growth.