We recently published a list of Top 10 Stocks Analysts are Watching as AI Selloff Deepens. In this article, we are going to take a look at where Arista Networks Inc (NYSE:ANET) stands against other top stocks analysts are watching as AI selloff deepens.

Major AI stocks are struggling to gain traction as investors rethink their strategies amid concerns of a slowdown in spending. Even top tech bulls are starting to use the word “bubble” for the AI trade. Gene Munster, Deepwater Asset Management managing partner, said in a latest program on CNBC that he believes we still have two years of the AI bull run before the bubble bursts.

“From a high-level perspective, I always return to the fundamentals as a tech investor. The fundamentals of these companies remain strong. I predict we have two good bullish years ahead before a spectacular bubble burst. When I see this, it shakes my confidence, but if I stay focused on the fundamentals, I still believe this trade will play out.”

READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks analysts are currently talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A technician in a server room managing a large-scale network of computers.

Arista Networks Inc (NYSE:ANET)

Number of Hedge Funds Investors: 70

Rob Sechan, CEO of NewEdge Wealth, said in a latest program on CNBC that he’s buying Arista Networks Inc (NYSE:ANET) shares. Here is how he explained the reasons for his bullish outlook on the stock:

“They make essential networking hardware and software that connects GPUs and servers, allowing for more efficient compute. They’re highly regarded for their AI networking in particular. Their main customer base is the hyperscalers, for which we continue to get good news. There’s no indication that they’re reducing capex. It now trades at a 37 times forward PE, rich for us, but it’s down from 50 earlier this year.”

Madison Mid Cap Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:

“The top five contributors for the quarter were Liberty Formula One, Arista Networks Inc (NYSE:ANET), Copart, Brookfield Asset Management, and Lithia Motors. Arista Networks posted another quarter of better-than-expected revenue and earnings growth. More importantly, the outlook remains robust, with promising results from its AI trials with customers on top of anticipated solid growth in the core business.”

Overall, ANET ranks 7th on our list of top stocks analysts are watching as AI selloff deepens. While we acknowledge the potential of ANET as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ANET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.