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 4 AI consumers· 1 recurring
Per the valuechain.wiki graph, Arista Networks is directly linked to 6 companies (2 supply, 4 revenue relationships) and reaches 28 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 |
|---|---|---|---|---|---|---|---|
| Planet Labs | lead2 | · | -29.3 | -43.2 | +63.6 | +388.1 | +32.1 |
| Starbucks Corp | lead2 | +11.1 | -13.2 | -1.2 | -2.5 | -5.3 | +27.4 |
| Johnson Controls | lead2 | +77.4 | -19.3 | -7.6 | +39.8 | +53 | +20 |
| Snowflake | lead2 | +20.4 | -57.6 | +38.6 | -22.4 | +42.1 | +19.2 |
| Costco Wholesale | lead2 | +51.8 | -19 | +49 | +39.6 | -5.4 | +6.6 |
| Procter & Gamble | lead2 | +20.5 | -5 | -0.9 | +17.3 | -12.3 | +4.1 |
| MercadoLibre, Inc. | lead2 | -19.5 | -37.2 | +85.7 | +8.2 | +18.5 | -8 |
| Uber | lead2 | -17.8 | -41 | +149 | -2 | +35.5 | -8.8 |
| McDonald's | lead2 | +27.8 | +0.5 | +15.1 | +0.1 | +7.9 | -9 |
| LVMH Moet Hennessy Louis Vuitton | lead2 | +46.6 | +12.7 | -1.8 | -7.3 | -20.4 | -9 |
| Recursion Pharmaceuticals | lead2 | · | -55 | +27.9 | -31.4 | -39.5 | -13 |
| ServiceNow | lead2 | +17.9 | -40.2 | +82 | +50.1 | -27.7 | -29.7 |
| Alphabet (Google) | lead1 | +65.3 | -39.1 | +58.3 | +36 | +66 | +14.3 |
| Meta Platforms | lead1 | +23.1 | -64.2 | +194.1 | +66 | +13.1 | +1.6 |
| Microsoft | lead1 | +52.5 | -28 | +58.2 | +12.9 | +15.6 | -20 |
| Arista Networks | node | +97.9 | -15.6 | +94.1 | +87.7 | +18.5 | +42.7 |
| Marvell | benef1 | +84.6 | -57.5 | +63.7 | +83.8 | -22.8 | +177.8 |
| Broadcom | benef1 | +56.5 | -13.3 | +104.2 | +110.5 | +50.6 | +16 |
| Micron Technology | benef2 | +24.2 | -45.9 | +71.9 | -1 | +240.2 | +243.3 |
| United Microelectronics (UMC) | benef2 | +43.2 | -40.3 | +39.2 | -19 | +28.8 | +215.1 |
| SK hynix | benef2 | -0.4 | -25.6 | +53.9 | +48.6 | +361.1 | +140.3 |
| Samsung Electronics | benef2 | -9 | -14.2 | +20.9 | -26.4 | +212.9 | +77.9 |
| Keysight Technologies | benef2 | +56.3 | -17.2 | -7 | +1 | +26.5 | +58.5 |
| TSMC | benef2 | +12.1 | -36.7 | +42.3 | +92.6 | +55.9 | +43.6 |
| Toppan Printing | benef2 | +49.3 | -2.1 | +99.1 | +8.1 | +10.7 | +9.9 |
YTD as of 2026-07-10 · source: Yahoo Finance
Arista Networks operates across AI datacenter Ethernet switches. Momentum stayed firm and it is +41% in 2026. The supply side (avg +101.5%) has moved harder than the stock (+41%). 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 (+186.6%) and the furthest behind is Microsoft (-20.2%). 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 2026-07-09Analyst ratings
Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target $197 · Price $186.96 (07-10) · Upside +5%