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Arista Networks Drops 6% After Nvidia Lands Meta and Oracle for Spectrum‑X

Analysts signal a constructive long‑term view based on robust results plus a debt‑free balance sheet.

Overview

  • Nvidia said Meta and Oracle selected its Spectrum‑X Ethernet switches to power AI data centers, intensifying competition in high‑performance networking.
  • Arista shares fell about 6% over Oct. 14–15 to roughly $139 as investors weighed potential revenue displacement at large customers.
  • Market concern centers on Meta’s spend potentially shifting to Nvidia’s platform, which could affect Arista given Meta’s scale as a client.
  • Arista’s latest quarter delivered about $2.2 billion in revenue, up roughly 30% year over year, alongside continued strong operating margins.
  • Despite the pullback, recent analyses maintain upbeat targets around $181–$184 and point to $8.8 billion in cash with no reported debt as support for the outlook.