Tech companies, especially those that leverage artificial intelligence, have been in the spotlight this year with investments from the likes of Nvidia, Baidu, and Alibaba. However, one perhaps lesser-known company stands out for portfolio manager Sanjay Iyer: US cloud computing and networking equipment company Arista Networks. “[Arista] Ayer, portfolio manager at US-headquartered WCM Investment Management, told CNBC Pro on Oct. 18. One of Arista’s key customers, who spoke before Meta last week, released earnings. The social media giant’s cautious guidance weighed on Arista shares, but shares are up about 40 percent year-to-date. In contrast, Nvidia is one of the most prominent AI. The stock is trading about 175% higher than at the beginning of the year. Arista considers legacy companies Cisco and Juniper as competitors and was launched with the goal of creating a “disruptive low-latency, high-bandwidth, high-performance product.” More than 40 percent of Arista’s revenue comes from Ayer added. It is currently acquired through Microsoft and Meta, and Ayer acknowledged that relying solely on two companies could deter some investors. Network providers, but he added, “Arista is embedded in these companies. They are not [just] An outsourced manufacturer or supplier of their hardware product [also] is an R&D partner, and they help shape the roadmap for these companies’ networking needs.” Of the 21 analysts covering Arista, 11 have given it a buy rating, according to FactSet data, and the average price target is $203.50, which is close to that. 6% upside potential. ANET YTD mountain annual stock performance in Arista Networks. For Ayer, the company’s “customer-centric culture,” whose network operators are all trained software engineers, makes it a good investment. “When you talk to people in the industry, the feedback is clear that this is ‘high-quality talent,'” he added. “So, they only get the highest talent that sets them apart.” Having a productive workforce should lead to better output and ultimately stronger finances, Ayer said. WCM Select Global Growth Equity Fund, said he always looks for companies with strong corporate cultures. “We spend a lot of time trying to understand the DNA of a company,” he said. He added that it is the “most dangerous words” in investing. They include: “It’s still a great business” and “It’s cheap.”
#Missing #Nvidia #fund #manager #undertheradar #network #stock #set #boost #artificial #intelligence
Image Source : www.cnbc.com