Arista Networks, Inc. Stock News

While Nvidia gets all the attention among companies providing chips and equipment to AI data centers, there are dozens of others benefiting from the soaring spending from the industry's hyperscalers. Advanced Micro Devices (AMD 0.05%) and Arista Networks (ANET -2.17%) have both seen their revenue climb thanks to ongoing AI spending.

SoundHound AI (SOUN -0.91%), a developer of artificial intelligence (AI)-powered speech and audio recognition tools, has been a polarizing investment ever since its public debut three years ago. The bulls were initially impressed by its rapid growth, expanding customer base, and the disruptive potential of its tools, which could be customized for restaurants, vehicles, consumer electronics, and...

A recent climb in Arista Networks' NYSE: ANET stock price was driven by exceptionally high trading volume, resulting in a moderate two-day gain of approximately 10%. However, the massive dollar value of shares traded during that time suggests a deeper story: large, institutional funds appear to be making significant investments in the tech sector company.

The earnings season that just ended confirmed that concerns about an AI infrastructure bubble are overstated. If anything, demand for data centers and the equipment that supports them will continue to grow.

The stock market continues to show its resilience, and that's especially true for stocks in the technology space. The tech-forward Nasdaq Composite index is trading within striking distance of its all-time high.

Arista Networks (ANET 6.68%) and Cisco Systems (CSCO 1.67%) represent two different ways to invest in the networking infrastructure and software market. Arista is a smaller, higher-growth player focused on data centers and cloud-scale networks, while Cisco is the more diversified market leader serving a wider range of sectors.

Are you looking for some new growth stocks now that many of the market's usual favorites -- like Apple and Alphabet -- aren't as compelling as they once were? Don't panic.

Technology has been the market's top-performing sector over the past five years, and it remains one of the most reliable engines of long-term growth. However, not every strong company in the space is performing well right now -- some well-established names have seen their stock prices decline despite solid fundamentals.