Arista Networks Stock Gets A Price-Target Bump From BofA, Thanks To Generative AI-Fueled Demand Surge: Retail's Bullish

Shares of Arista Networks Inc. (ANET) gained nearly 1.5% in morning trade on Thursday after the company’s stock received a price target bump from Wall Street.

According to a report by TheFly, analysts at Bank of America (BofA) Securities increased their price target for Arista Networks to $130 from $114, implying an upside of nearly 11% from the current price.

In their latest note, BofA analysts underscored their bullish thesis on Arista stock by highlighting that the company could be a significant beneficiary of the surge in demand for networking infrastructure fueled by generative artificial intelligence (AI).

According to BofA analysts, the surge in demand for computational use cases is leading to a rise in demand for key networking equipment like switches, routers, optical and storage devices, and more.

They also expect Cisco Systems Inc. (CSCO) and Ciena Corp. (CIEN) to be key beneficiaries of this demand surge.

In December, Morgan Stanley analysts raised their price target for Arista Networks to $118, expecting the company to benefit from a surge in demand in the AI segment.

Retail sentiment on Stocktwits entered the ‘bullish’ (56/100) territory after being ‘neutral’ (49/100) a day ago. Message volume remained in the ‘high’ (64/100) zone.

ANET sentiment and message volume January 16, 2025, as of 10 am ET | Source: Stocktwits

Meanwhile, one user wondered if Arista is the Nvidia of the past.

Another user posted a technical analysis of Arista’s stock, saying it looks “strong as usual.”

Arista Networks’ stock price has gained more than 31% over the past six months, while its one-year gains stand at 86%.

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