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- Arista Networks (NYSE:ANET) was downgraded by BNP Baripas on Wednesday, citing an increased threat from Nvidia (NASDAQ:NVDA).
- Shares fell 0.8% in morning trading.
- “We are downgrading Arista from Outperform to Neutral given increasing competitive pressure and encroaching share opportunities in backend Ethernet networking from Nvidia and whitebox vendors such as Celestica and Accton,” analyst Karl Ackerman wrote in a note to clients.
- Ackerman noted that the AI networking market is “quickly shifting” from InfiniBand to Ethernet, and Nvidia and other vendors are likely to capture the “lion share” of the Ethernet switching market. “The adoption of rack-scale GPU architectures and Quantum-X switches supporting 1.6T in 2H:25 – a full year ahead of Ethernet switches – may crowd out Arista’s near-term opportunity,” Ackerman added.
- He now expects Arista’s AI sales in 2027 to hit $2.5B, down from a prior view of $3.4B.
More on Arista and NVIDIA
- NVIDIA Corporation (NVDA) Presents at Rosenblatt’s 5th Annual Technology Summit – The Age of AI 2025 Conference Transcript
- Nvidia: On The Road To $4T Valuation
- Arista Networks: Amid Tariffs, Slow And Steady Wins The Networking Race
- Nvidia’s H20 GPUs coming back to China may be next part trade talks: Wedbush
- Nvidia to build world’s 1st Industrial AI Cloud in Europe with 10,000 GPUs