The stock market slightly fell on Monday as investors await Federal Reserve’s interest rate decision. The central bank kicked off its September policy meeting.
Overall, S&P 500 and NASDAQ went down 0.1% to 6,607 and 22,334, respectively.
Chart of the Day
Here is the one-year chart of Arista Networks (ANET) as of August 31, 2025, when the stock was at $137.
Arista Networks continues to be the premier and preferred AI networking platform of choice for all flavors of AI accelerators. The company delivered 39% profit growth on 30% revenue growth last quarter.
Management stated while the majority of AI accelerators today are NVIDIA GPUs, Arista Networks is entering early pilots connecting alternate AI accelerators, including startup XPUs, the AMD MI series, and AI Titan customers who are building their own XPUs. The demand for these accelerators has fueled rapid growth in Arista Networks’ backend AI networking business, scaling from nearly zero revenue in 2022 to hundreds of millions in 2025. This surge in AI-driven networking has been so strong that Arista Networks raised its 2025 full year revenue guidance from $8.2 billion, or 17% growth, to $8.75 billion, or 25% growth. Management stated they expect its aggregate AI networking revenue alone to exceed $1.5 billion this year, underscoring how critical accelerator adoption has become.
With AI spreading from cloud titans into enterprise and neo-cloud sectors, Arista Networks is cementing its role as the trusted backbone for next-generation AI infrastructure.
ANET is part of our Growth Stock Portfolio and Aggressive Growth Portfolio. It is a core tech holding for David Sharek, Founder of School of Hard Stocks.
