Arista Stock Falls Even As Analysts Highlight $6B Opportunity From Stargate: Retail’s Doubling Down

Arista Networks Inc. (ANET) shares dropped by nearly 1% during mid-day trade on Thursday despite optimism from Piper Sandler, which highlighted the company as a key beneficiary of the Stargate AI project.

Despite the modest decline in the stock price, retail investors remain confident. 

Piper Sandler believes Arista is likely to benefit significantly due to its strong connections with major tech players like Microsoft, Meta, Oracle, Apple, and OpenAI, as well as its advanced Ethernet switching technology, as per a report on TheFly.

Switching accounts for more than half of global networking spending, and Arista holds a commanding 30% share of the high-end data center switching market, according to the research note.

The brokerage estimates Stargate could add $6 billion to Arista’s addressable market over the next five years, translating to roughly $1.25 billion annually.

Arista Networks Inc. Sentiment and Message Volume on Jan.23 as of 1:20 p.m. ET | Source: Stocktwits

Meanwhile, retail sentiment around Arista Networks’ on Stocktwits improved to ‘extremely bullish’ from ‘bullish’ a day ago as message volumes remained at ‘extremely high’ levels. 

Some retail investors expressed caution, suggesting it might be wise to take profits ahead of a potential pullback before the stock resumes its upward trajectory. 

Others expressed unwavering confidence, stating they plan to add to their holdings on any dip.

Arista’s stock has nearly doubled in value over the last year and shown gains of over 16% so far in 2025.

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Read also: Arm Holdings Stock Pulls Back After Best Day In A Year: Retail Confidence Unshaken Amid Musk’s Stargate Concerns