Posted 4/12/2024, 9:09:25 PM
Arista Stock Downgraded: AI Data Centers Seen as Challenge for Network Leader
- Arista Networks stock downgraded to sell by analyst who believes it won't be a big winner in AI data centers
- Analyst argues Arista's strengths in network architecture may not translate well to needs of AI workloads
- AI requires remote direct memory access (RDMA), not an extensible operating system like Arista's
- Analyst believes Nvidia will capture most of the value in AI data centers with its chips and networking software
- Arista's $750 million AI sales pipeline casts doubt on its ability to ramp up AI data center revenue