Arista Networks vs Applied Materials

This page compares Arista Networks and Applied Materials, examining business models, financial performance, and market context in clear, accessible language. Both companies are presented neutrally to help readers understand strategies, strengths, and industry positions without urging action. Educational content, not financial advice.

This page compares Arista Networks and Applied Materials, examining business models, financial performance, and market context in clear, accessible language. Both companies are presented neutrally to ...

Comparison Snapshot

Key Financial Metrics

ANET

Metric

AMAT

$174.25B

Market Cap

$260.66B

18.30%

Potential Profit

-19.63%

Buy

Analyst Rating

Buy

Why It's Moving

Arista Networks Outpaces Market Amid Earnings Anticipation

Stock jumped 2.09% versus broader market gains, reflecting confidence ahead of Q4 results expected to show EPS of $0.75 (up 15%) and revenue of $2.37B (up 23%).
Annual forecasts point to EPS of $2.88, a 27% rise, underscoring sustained momentum in AI-driven data center solutions.
Premium valuation at 43.45 forward P/E versus industry 24 signals high expectations for Arista's profitability edge.

Sentiment:

🐃Bullish

Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.

Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.

Sentiment:

🐃Bullish

Arista Networks Outpaces Market Amid Earnings Anticipation

Stock jumped 2.09% versus broader market gains, reflecting confidence ahead of Q4 results expected to show EPS of $0.75 (up 15%) and revenue of $2.37B (up 23%).
Annual forecasts point to EPS of $2.88, a 27% rise, underscoring sustained momentum in AI-driven data center solutions.
Premium valuation at 43.45 forward P/E versus industry 24 signals high expectations for Arista's profitability edge.

Sentiment:

🐃Bullish

Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.

Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.

Sentiment:

🐃Bullish

Investment Analysis

Arista Networks

ANET

Pros

Arista Networks recorded a 28% year-over-year sales increase to $2.31 billion in Q3 2025, beating management guidance.
The company enjoys strong profitability with a current return on equity (ROE) of 32.3%, above its 10-year average.
Arista’s shares have shown solid performance, rising 26.7% over the past year and outperforming the broader market.

Considerations

Analyst price targets indicate only a moderate upside potential of approximately 6% over the next 12 months.
Despite strong ROE, Arista’s profitability metrics are lower compared to some peers in semiconductor equipment and software sectors.
Recent analyst activity shows mixed sentiment with some downgrades amid ongoing competitive pressures in cloud networking.

Applied Materials

AMAT

Pros

Applied Materials exhibits strong technical momentum with its share price above key moving averages, indicating bullish trends.
The company has a robust return on equity at 35.91%, higher than Arista Networks, reflecting efficient capital use.
AMAT benefits from diversified exposure in semiconductor equipment, supporting growth from multiple end markets including chip manufacturing.

Considerations

Applied Materials faces some near-term selling pressure, raising risks of bearish movement despite current bullish technicals.
Its valuation metrics are somewhat less attractive in comparison to Arista Networks within their respective industries.
The semi equipment industry is cyclical and exposed to fluctuations in chip demand, impacting Applied’s revenue visibility.

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