$ANET: Breakout candidate in price discovery mode.

Arista network is a mid-cap semiconductor stock with expertise in Ethernet based network equipment’s and designed for AI workloads. It equipment’s combined with its superior software stack is well designed for this current AI based bull run we are experiencing in the market. During the April 2025 volatility spike the stock suffered a 55% drawdown hitting the 60 $ mark indicated by the corrective Eliot wave in the chart below. Since then, the stock has recovered all its losses and recent blow out quarterly numbers puts it firmly above the previous ATH. It clearly broke out of the upward sloping chart and made a new high of 140 $.

So what next? In the chart below we look at the confluence of various indicators to estimate the future direction of the stock. In my opinion the clear direction of this AI stock is upwards if we are in this AI driven bull market. A simple fib retracement level on the yearly chart from the top to bottom indicates we are basically in the price discovery mode for this stock. The next consequential target will be 210 $. Let’s enjoy the ride if the trend persists.

Verdict: ANET broke out and in price discovery mode. Above its ATH it can touch 210 $ before any meaningful consolidation.