As of 2:34 a.m. in New York (ET) on Saturday, December 27, 2025, U.S. stock markets are closed for the weekend, with Arista Networks, Inc. (NYSE: ANET) last trading at approximately $131.84. This price reflects its close on Friday, December 26, 2025, which also stood at $131.84, with a session range of about $130.45–$132.13 on roughly 2.3 million shares traded, according to Yahoo Finance historical data.
With the market now closed, investors will turn their attention to the next regular NYSE session scheduled for Monday, when trading will occur from 9:30 a.m. to 4:00 p.m. ET. Several factors are influencing Arista at this time, including company fundamentals, product catalysts, and analyst forecasts, against the backdrop of a broader market context that is affecting how growth and AI infrastructure stocks are perceived as the year concludes.
The current market setup is particularly significant for Arista Networks due to the typically lighter trading volumes observed in late December, which can amplify price movements in individual stocks, especially large-cap growth names that investors may rebalance into or out of as the year ends. On December 26, Wall Street wrapped up a quiet, post-holiday session near record highs, with major indexes slipping slightly and trading volume described as thin. Ryan Detrick, chief market strategist at Carson Group, remarked that the market was “catching our breath” after a recent strong rally, indicating that the “Santa Claus rally” period still had potential to unfold.
As 2025 draws to a close, investors are closely observing whether the S&P 500 approaches the 7,000 level, while also keeping an eye on macroeconomic factors like upcoming Federal Reserve minutes and ongoing discussions regarding interest rates in 2026. For Arista, these dynamics are crucial; the company is seen as a high-quality player in the AI infrastructure space and hyperscale data centers, often trading more like a growth or AI proxy than a traditional networking company when market sentiment shifts.
Heading into the weekend, Arista Networks is priced at around $131.84, reflecting a market capitalization of approximately $183 billion and a trailing P/E ratio in the mid-50s. This valuation sensitivity is significant; Nasdaq commentary has noted that a “rich valuation” could lead to above-average volatility if concerns arise regarding a slowdown in AI-related spending. Moreover, a recent analysis indicated that Arista is trading at an elevated forward price-to-sales multiple relative to its industry, alongside upward revisions to its earnings estimates, which is generally considered a bullish sign.
Several current catalysts are affecting Arista Networks, particularly its advancements in AI data centers and 800G technology, as well as the growing demand from hyperscalers. Arista finds itself well-positioned in the expanding AI landscape; if GPUs serve as the “brains,” then the company’s networking solutions act as the circulatory system, vital for meeting the demands of AI clusters that require high bandwidth, low latency, and reliability.
In late October, Arista announced its new R4 Series platforms aimed at AI and data center applications, featuring dense 800 Gbps systems and “HyperPorts” designed to enhance capacity and performance for AI frameworks. Seamus Crehan, president of Crehan Research, highlighted that the 800GbE market is experiencing rapid growth, with Arista leading in branded market share for 800GbE and data center Ethernet switching, a segment expected to grow strongly over the next few years due to increased AI and data workload demands.
The company recently demonstrated strong financial performance, posting revenues of $2.308 billion for its Q3 2025 period, marking a 27.5% year-over-year increase. Its non-GAAP EPS reached $0.75, a rise from $0.60 the previous year. CEO Jayshree Ullal noted that Arista’s “centers of data” strategy is resonating with customers as firms connect their campus-to-cloud and AI operations effectively.
Looking ahead, the company’s guidance and long-range targets are pivotal for investor sentiment. During an analyst event, Arista discussed expectations of 20% revenue growth for fiscal 2026, emphasizing future AI networking revenue and margin prospects, while acknowledging a competitive landscape in AI networking. This sets the stage for ongoing investor scrutiny of the company’s ability to sustain growth and maintain margins amid increasing competition.
A noteworthy development was Arista’s acquisition of Broadcom’s VeloCloud SD-WAN portfolio announced in July 2025, allowing the company to expand its offerings beyond hyperscalers and into enterprise campus and branch networking. This strategic move aims to diversify Arista’s growth profile, though it introduces integration and execution risks that investors must consider.
As of now, analysts maintain a generally positive outlook for Arista, with various price targets reflecting potential upside. MarketBeat reports an average 12-month price target of $163.56, while TipRanks lists an average target around $169.22, indicating double-digit percentage upside potential based on Arista’s current trading levels. However, not every analyst is enthusiastic; for instance, Rosenblatt Securities has reiterated a Hold rating with a target of $140, illustrating the mixed sentiment in a highly competitive market.
As the market remains closed over the weekend, Arista investors should prepare for potential volatility when trading resumes on Monday. Keeping an eye on macroeconomic indicators, upcoming earnings reports, and sector news will be essential for navigating the landscape as Arista continues to solidify its position as a key player in AI networking solutions, especially as it approaches critical financial milestones in 2026.
See also
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