New York, February 23, 2026, 13:14 (ET) — Regular session
- ANET fell with a broader risk pullback as new tariff uncertainty weighed on U.S. stocks
- Big Tech AI infrastructure spending forecasts are back in focus, with payback questions alongside demand hopes
- Attention turns to Nvidia results and Arista’s scheduled investor appearances this week
Arista Networks, Inc. shares fell 3.1% to $128.62 in early afternoon trading on Monday, as investors cut exposure to growth-linked tech names amid a wider market slide.
That matters now because Arista has become a proxy for spending on high-speed networking gear inside AI, or artificial intelligence, data centers — and those trades have been twitchy as markets swing between “buildout” optimism and “payback” doubts.
Bridgewater Associates said Alphabet, Amazon, Meta and Microsoft are projected to invest about $650 billion in AI infrastructure in 2026, up from $410 billion in 2025, calling the boom a “more dangerous phase” as the bill rises and returns are scrutinized. (Reuters)
The broader tape was heavy after President Donald Trump announced new global tariffs following a Supreme Court ruling that voided most of his earlier levies. “Markets don’t like uncertainty,” Interactive Brokers chief market analyst Steve Sosnick said, as the Dow fell about 1.5% and the Nasdaq slid about 1.2% around midday. (Reuters)
Other networking and infrastructure names were also lower, with Cisco down about 2.1% and Hewlett Packard Enterprise off nearly 5.9%, while Nvidia was modestly higher.
Arista’s last major company update came with its quarterly results on Feb. 12, when it reported full-year 2025 revenue of $9.006 billion and forecast first-quarter 2026 revenue of about $2.6 billion. CEO Jayshree Ullal said the company “exceeded both our AI networking and campus expansion goals,” while CFO Chantelle Breithaupt pointed to “strong operating leverage” in the model. (Arista)
For investors, the near-term debate is less about whether AI data centers need more switching capacity — and more about timing, customer concentration and how quickly orders convert into revenue without margin slippage.
Hardware makers are also caught in the crosscurrents of trade policy. Fresh tariffs can add cost and complicate supply chains, and they can push large customers to revisit spending plans if uncertainty drags on.
But Arista’s setup cuts both ways. If hyperscaler buildouts keep accelerating, the demand story can reassert itself fast; if customers pause to digest spending or tariffs broaden, the downside is usually a sudden air pocket in orders and multiples.
Nvidia is due to release results after the market closes on Wednesday, Feb. 25, a report investors often use as a checkpoint for the AI infrastructure cycle. (Kiplinger)
Arista management is scheduled to appear at Bernstein’s “What’s next in Tech” event on Feb. 25 and at the Morgan Stanley Technology, Media and Telecom Conference on March 3 — dates traders will use to press for detail on cloud demand, pricing and the next leg of AI networking orders. (Arista)
