Arista Networks stock pressured by Nvidia's networking goals

Arista Networks (ANET) shares tumble after chip giant Nvidia (NVDA) blew past its fiscal first-quarter 2025 earnings expectations. Market Domination Hosts Julie Hyman and Josh Lipton relate what Nvidia's AI chip offerings and Spectrum-X Ethernet platform may mean for Arista's own network operating system enterprise.

For more of everything Nvidia, catch Yahoo Finance's exclusive interview with CEO Jensen Huang.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan.

Video transcript

Shares of a risk and networks down today.

Following Invidia earnings report, the chip maker plans to focus on a brand new market to bring large scale A I to Ethernet only data centers and just more broadly on the conference call.

Uh We heard some commentary about the networking business and how they plan to build there.

A Jensen won the CEO talking about their new spectrum X for Ethernet.

But he also said you can count on us having new networking technology on a very fast rhythm.

And so that seems to have sort of spooked Arria networks here.

I I did see, you know, analysts of Bloomberg uh raising some questions here saying, yeah, yeah, sure.

It's a natural transition for Jensen Wong but details they said are still needed.

They believe hyperscale cloud customers still prefer an open vendor ecosystem to reduce the technology economics which will to the position here, there was a risk to well in cloud A I networking.

Uh and the street is indeed overwhelmingly bullish on this name, right?

Julian, the stock has had a really strong we it's up about 30% this year even now.

It's up about 100 and 10% over the past 12 months.

But listen, you can't blame investors when they get a little nervous if you hear Jensen Wong in the video or are getting curious about the sector you operate in.

Yeah, and expanding in that area as well, for sure.