Early Bird Prime for May 17, 2026

Arista Networks $ANET ( ▼ 3.95% ) has been quietly tiptoeing up the stock market staircase with a 6.26% increase this year. It was surging in April, but then tripped over its own feet in May due to some gross margin concerns.

A few days ago, an analyst from Raymond James upgraded the stock to "Outperform" from "Market Perform." The analyst believes that AI growth vectors will play into Arista's strengths, helping it gain market share.

AI networking is the new kid on the block, and it's becoming an increasingly important part of Arista's story. The company is not just riding the AI hardware wave; it's selling the network layer that connects AI clusters. Think of it as the social butterfly at the AI party, making sure everyone is connected and having a good time. With AI networking revenue potentially surpassing $2 billion in 2026, Arista could soar.

But remember that demand for AI networking can be unpredictable. Arista's results depend heavily on hyperscaler buildouts, deferred hardware revenue timing, and large project cycles. 

Should you buy Arista Networks' stock right now in 2026, or should you avoid? Here’s the answer…