With Nvidia Competition Looming, Is This Top Data Center Stock Still a Buy?
Shareholders of data center networking design and software provider Arista Networks (NYSE: ANET) got another helping of worry recently, this time delivered by none other than Nvidia (NASDAQ: NVDA).
Arista manages a formidable little data center empire based on Ethernet networking technology, the same wired tech you're likely using to plug your PC into your internet modem. But in April, several Wall Street analysts downgraded their outlook for Arista on news of potential new competition from Nvidia. That worry rose another notch on May 22 when Nvidia CEO Jensen Huang told analysts on the company's earnings conference call that his company is "all in on Ethernet."
Despite the heightened worries (and the trading volatility they created), Arista stock is still up nearly 30% so far in 2024, and it has more than doubled in price in the last year.
Source Fool.com
