Arista Networks outpacing Cisco in growth with flexible approach using Broadcom's chips

From Nasdaq: 2025-06-24 03:45:00

Arista Networks (NYSE: ANET) and Cisco Systems (NASDAQ: CSCO) offer different investment opportunities in the networking infrastructure and software market. Arista, focusing on data centers and cloud-scale networks, has seen its stock rise by 540% in the past five years, while Cisco, a diversified market leader, saw a 50% increase. Arista’s growth can be attributed to its flexible approach using Broadcom’s chips and open-source software, appealing to customers wary of being locked into Cisco’s ecosystem.

In terms of growth, Arista has outpaced Cisco, with revenue rising at a CAGR of 24% from 2019 to 2024 compared to Cisco’s less than 1% growth. Arista’s stock is projected to have a CAGR of 19% from 2024 to 2027, while Cisco is expected to grow at a CAGR of 5%. Arista’s faster growth, reasonable valuation, and potential to disrupt Cisco make it a compelling investment choice. Cisco, on the other hand, remains a one-stop-shop for networking solutions, offering integrated cybersecurity and collaboration features.



Read more at Nasdaq: Better Tech Stock: Arista Networks vs. Cisco Systems