Arista Networks Stock Drops 11% After Meta-Nvidia Pact, $210 Price Target
Arista Networks shares plunged about 11% in after-hours trading following Meta’s expanded AI infrastructure pact with Nvidia, potentially squeezing ANET’s market share in hyperscale networking. Separately, analysts upgraded Arista to Strong Buy with a $210 price target, citing a 76% rise in hyperscaler capex for 2026 and H2 growth pickup.
1. Shares Fall After Meta-Nvidia AI Pact
Arista Networks shares dropped about 11% in after-hours trading following Meta’s announcement of a multiyear AI infrastructure partnership with Nvidia, which may reduce opportunities for both AMD and Arista in supplying hyperscale networking equipment to Meta’s data centers.
2. Strong Buy Upgrade and Future Outlook
Analysts upgraded Arista Networks to Strong Buy with a $210 price target, forecasting a 76% increase in hyperscaler capital expenditure for 2026 and anticipating growth acceleration in the second half of 2026; memory chip shortages are expected to pressure margins, but Arista’s pricing power and $6.8 billion in purchase commitments should offer some cushion.