AI datacenter Ethernet switches
Arista Networks
The leader in high-speed Ethernet switches for AI and cloud datacenters. 2024 revenue $7B (+19.5%). Microsoft and Meta each spend $1B+ a year, together 35%+ of revenue (cloud titans 48%). Depends on Broadcom (Tomahawk/Jericho) for switch silicon; Meta built AI clusters on the 7700R4.
ANET Updated Jul 12, 2026 5 AI consumers· 3 recurring
Per the valuechain.wiki graph, Arista Networks is directly linked to 6 companies (2 supply, 4 revenue relationships) and reaches 47 companies within two hops; the links are backed by 5 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · FY2025 revenue $9.0B (+28.6%), 64.1% gross margin. Top two customers (Microsoft/Meta) at 26% and 16%
- Customer concentration · Two 10%+ customers are 42% of revenue (26%+16%). Depends on Broadcom/Marvell switch silicon. Beneficiary of AI back-end switching.
- Segments · Ethernet switches & software (Product) · Services & support (PCS)
Revenue from
- Microsoft High confidence· Revenue share 26% · FY2025 10-K largest of two 10%+ customers
Supplies AI data center Ethernet switches to Microsoft.Mentions EN Morgan Stanley·BofA·KeyBanc (via Benzinga) Published Jun 12, 2026: Arista analyst Buy, target ~$190 (MS OW $190, BofA $200, KeyBanc $200) - Meta Platforms High confidence· Revenue share 16% · FY2025 10-K smaller of two 10%+ customers
Supplies AI data center Ethernet switches to Meta Platforms. - Alphabet (Google) Medium confidence
Supplies AI data center Ethernet switches to Alphabet (Google). - Amazon Medium confidence
Supplies AI data center Ethernet switches to Amazon.
Pays to
Investments
- Share repurchases (capital allocation) High confidence· gross margin 64.1% · FY2025
Arista returns free cash flow via stock repurchase programs — a capital-allocation structure that deploys cash built up in the AI-switching boom (FY2025 revenue $9.0B, 64.1% gross margin) into buybacks alongside growth investment (R&D, M&A). With a net-cash, no-dividend stance, buybacks are the primary return mechanism.
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Snowflake | lead2 | +20.4 | -57.6 | +38.6 | -22.4 | +42.1 | +53.7 |
| Starbucks Corp | lead2 | +11.1 | -13.2 | -1.2 | -2.5 | -5.3 | +26.3 |
| Johnson Controls | lead2 | +77.4 | -19.3 | -7.6 | +39.8 | +53 | +21.7 |
| eBay Inc. | lead2 | +33.8 | -36.5 | +7.7 | +44.8 | +42.7 | +19.8 |
| Colgate-Palmolive Company | lead2 | +2.1 | -5.4 | +3.8 | +16.6 | -11 | +14.4 |
| Rockwell Automation, Inc. | lead2 | +41.2 | -24.8 | +22.6 | -6.2 | +38.4 | +12.6 |
| Illinois Tool Works Inc. | lead2 | +23.6 | -8.5 | +21.6 | -1 | -0.4 | +11 |
| Parker-Hannifin Corporation | lead2 | +18.3 | -6.9 | +60.8 | +39.6 | +39.5 | +10.2 |
| Cintas Corporation | lead2 | +26.5 | +3 | +34.8 | +22.2 | +3.8 | +7.4 |
| 3M Company | lead2 | +4.9 | -29.6 | -3.3 | +46.1 | +26.4 | +6.8 |
| Costco Wholesale | lead2 | +51.8 | -19 | +49 | +39.6 | -5.4 | +6.7 |
| Procter & Gamble | lead2 | +20.5 | -5 | -0.9 | +17.3 | -12.3 | +4.5 |
| Honeywell Technologies | lead2 | -0.3 | +4.9 | +0 | +10 | -6.4 | +3.8 |
| Salesforce, Inc. | lead2 | +14.2 | -47.8 | +98.5 | +27.8 | -20.2 | -1.6 |
| MercadoLibre, Inc. | lead2 | -19.5 | -37.2 | +85.7 | +8.2 | +18.5 | -1.8 |
| DoorDash, Inc. | lead2 | · | -67.2 | +102.6 | +69.6 | +35 | -6.5 |
| Uber | lead2 | -17.8 | -41 | +149 | -2 | +35.5 | -7.3 |
| ServiceNow | lead2 | +17.9 | -40.2 | +82 | +50.1 | -27.7 | -7.8 |
| Planet Labs | lead2 | · | -29.3 | -43.2 | +63.6 | +388.1 | -8.1 |
| Workday, Inc. | lead2 | +14 | -38.7 | +65 | -6.5 | -16.8 | -8.8 |
| Booking Holdings Inc. | lead2 | +7.7 | -16 | +76 | +41.3 | +8.6 | -9.3 |
| Recursion Pharmaceuticals | lead2 | · | -55 | +27.9 | -31.4 | -39.5 | -11.2 |
| AutoZone | lead2 | +76.8 | +17.6 | +4.8 | +23.8 | +5.9 | -12 |
| Stryker Corporation | lead2 | +10.2 | -7.4 | +23.8 | +21.3 | -1.5 | -13.3 |
| McDonald's | lead2 | +27.8 | +0.5 | +15.1 | +0.1 | +7.9 | -14.7 |
| Take-Two Interactive Software, Inc. | lead2 | -14.5 | -41.4 | +54.6 | +14.4 | +39.1 | -16.1 |
| LVMH Moet Hennessy Louis Vuitton | lead2 | +46.6 | +12.7 | -1.8 | -7.3 | -20.4 | -20.3 |
| Adobe Inc. | lead2 | +13.4 | -40.7 | +77.3 | -25.5 | -21.3 | -23.9 |
| Autodesk, Inc. | lead2 | -7.9 | -33.5 | +30.3 | +21.4 | +0.1 | -26.4 |
| Intuit Inc. | lead2 | +70.3 | -39.1 | +61.8 | +1.2 | +6.1 | -49.3 |
| AppLovin Corporation | lead2 | · | -88.8 | +278.4 | +712.6 | +108.1 | -52.4 |
| Alphabet (Google) | lead1 | +65.3 | -39.1 | +58.3 | +36 | +66 | +8.3 |
| Microsoft | lead1 | +52.5 | -28 | +58.2 | +12.9 | +15.6 | +4 |
| Meta Platforms | lead1 | +23.1 | -64.2 | +194.1 | +66 | +13.1 | -6.4 |
| Arista Networks | node | +97.9 | -15.6 | +94.1 | +87.7 | +18.5 | +47.9 |
| Marvell | benef1 | +84.6 | -57.5 | +63.7 | +83.8 | -22.8 | +163.4 |
| Broadcom | benef1 | +56.5 | -13.3 | +104.2 | +110.5 | +50.6 | +3.8 |
| Micron Technology | benef2 | +24.2 | -45.9 | +71.9 | -1 | +240.2 | +256.4 |
| United Microelectronics (UMC) | benef2 | +43.2 | -40.3 | +39.2 | -19 | +28.8 | +168.9 |
| SK hynix | benef2 | -0.4 | -25.6 | +53.9 | +48.6 | +361.1 | +81.6 |
| Keysight Technologies | benef2 | +56.3 | -17.2 | -7 | +1 | +26.5 | +61 |
| Samsung Electronics | benef2 | -9 | -14.2 | +20.9 | -26.4 | +212.9 | +59.7 |
| TSMC | benef2 | +12.1 | -36.7 | +42.3 | +92.6 | +55.9 | +41.9 |
| Toppan Printing | benef2 | +49.3 | -2.1 | +99.1 | +8.1 | +10.7 | +7.2 |
YTD as of 2026-09-04 · source: Yahoo Finance
Arista Networks operates across AI datacenter Ethernet switches. Momentum stayed firm and it is +47.9% in 2026. The supply side (avg +83.6%) has moved harder than the stock (+47.9%). That is the classic bottleneck pattern: supplier volume leverage is being priced before this layer's own margin. Among connected nodes the furthest ahead is Marvell (+163.4%) and the furthest behind is Meta Platforms (-6.4%). If chain logic explains the gap, the laggard is the next propagation candidate; if not, the link itself deserves a second look. Depends on Broadcom (Tomahawk/Jericho) for switch silicon; Meta built AI clusters on the 7700R4.
Analysis generated from returns as of 2026-09-04Analyst ratings
Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target $197 · Price $193.78 (09-04) · Upside +2%