Chip Stock Investor on $ANET (Nov 6, 2026)
Arista is a very different business than Nvidia even though Nvidia was encroaching on its turf; far from being disrupted, Arista has thrived and now works on things that could disrupt Nvidia itself. It plays across compute, network and storage and is expected to work with over 10 AI accelerator companies, so the speaker keeps holding both ANET and Nvidia.
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First, Arista Networks. We've done a little bit of a rework on this three parts of a computing system from our old design. But this illustrates the three parts of the system, the computing, network, and storage systems, and Arista now plays in all three.
While Arista is a networking company, they're now building systems that work with the other parts of the computer, the computing as well as the storage system.
But Arista has said on their earnings call, they're now expected to be working with over 10 AI accelerator companies on the compute side of this equation, various storage solutions as well.
They have a new MCP product that allows you to interact with your network in natural language, and it'll go out and just find out what's happening within your network. We contended that Arista is a very different type of asset, very different type of business than Nvidia, even though Nvidia was encroaching on Arista's turf.
And lo and behold, two years later, far from being disrupted, Arista has thrived and is working on a lot of new stuff that actually brings new competition, potential disruption to Nvidia itself, rather than just the other way around, Nvidia potentially disrupting Arista.
So, we continue to hold both in our portfolio and think there's a really good case to be made for continuing to hold both.