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

$180.98B

Market Cap

$253.31B

11.59%

Potential Profit

-20.67%

Buy

Analyst Rating

Buy

Why It's Moving

Arista Networks Surges 8.7% as Analysts Spotlight AI Networking Edge and Undervaluation

Analysts highlight Arista's leadership in high-bandwidth, low-latency networking via Etherlink and 7800 platforms, positioning it to capture more AI data center revenue.
Stock deemed 20.5% undervalued at recent close of $129.83, hinging on robust AI adoption and resilient profitability amid hyperscaler demand.
Recent 8.7% single-session gain reflects strength in cloud networking, with Q4 earnings expectations of $0.75 EPS and $2.37B revenue signaling solid growth trajectory.

Sentiment:

🐃Bullish

Analysts Boost AMAT Targets Amid AI Memory Surge, Despite Export Headwinds

Needham hiked its price target to $390 and KeyBanc to $380, spotlighting AMAT's edge in memory/AI expansion and vertical scaling opportunities.
Q4 display revenues soared 68% on advanced systems, better pricing, and surging OLED demand, signaling potential reacceleration in that segment.
Fiscal Q1 2026 earnings due February 12, where guidance on China risks, memory demand, and pricing could sway near-term momentum.

Sentiment:

🐃Bullish

Arista Networks Surges 8.7% as Analysts Spotlight AI Networking Edge and Undervaluation

Analysts highlight Arista's leadership in high-bandwidth, low-latency networking via Etherlink and 7800 platforms, positioning it to capture more AI data center revenue.
Stock deemed 20.5% undervalued at recent close of $129.83, hinging on robust AI adoption and resilient profitability amid hyperscaler demand.
Recent 8.7% single-session gain reflects strength in cloud networking, with Q4 earnings expectations of $0.75 EPS and $2.37B revenue signaling solid growth trajectory.

Sentiment:

🐃Bullish

Analysts Boost AMAT Targets Amid AI Memory Surge, Despite Export Headwinds

Needham hiked its price target to $390 and KeyBanc to $380, spotlighting AMAT's edge in memory/AI expansion and vertical scaling opportunities.
Q4 display revenues soared 68% on advanced systems, better pricing, and surging OLED demand, signaling potential reacceleration in that segment.
Fiscal Q1 2026 earnings due February 12, where guidance on China risks, memory demand, and pricing could sway near-term momentum.

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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