The author says they added to their Arista Networks (ANET) position after the last earnings report and bought again when the stock fell 15.28% over four weeks, arguing Arista offers an open Ethernet alternative to Nvidia's proprietary InfiniBand. Q2 revenue reached $3.0357 billion, up 37.69%, the 2026 outlook was raised to about $12.6 billion, or 40% growth, and non-GAAP operating margin rose to 49.9% from 48.8%. EPS of $1.02 beat the $0.8856 consensus for a sixth straight earnings beat, and cash and marketable securities came to about $13.3 billion. The author flags risks from customer concentration, with Microsoft and Meta as anchor customers, gross margin slipping to 63.4% from 65.6%, and a P/E near 62. For Q3, Arista guides to about $3.30 billion in revenue and EPS of $1.06–$1.08.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: The Ethernet Tollbooth: Arista Rides Broadcom Silicon to Break Nvidia’s InfiniBand Monopoly
Read the original on Yahoo Finance ↗
Keywords
NVDAearningssemiconductorsdata centers
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 210.96 |
| Change that session | -0.59% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- NVIDIA Just Took CPU Business From AMD and Intel. What It Does to the Target
NVIDIA's Vera CPU is already shipping to hyperscalers, and management expects CPU revenue to more than double in fiscal 28. The Grace CPU's trailing 12-month revenue exceeded $5 billion. After shares fell 4.09% over the past week and 2.34% over the past month, the 24/7 Wall St. price target of $260.60 sits 19.91% above the $217.33 price, and the article's model rates the stock a Buy. In Q2 fiscal 2027, revenue reached $96.221 billion, above the $92.07 billion estimate, and Data Center revenue rose 117%. The bull case reaches $271.47 within a year, while the bear case works out to $226.67; risks include $279 billion in supply commitments, days sales outstanding extended to 60 days from 45, and Q4 gross margin guidance of 71% to 72%.
- Does Jensen Huang Know Something Wall Street Doesn't? Nvidia's CEO Sees No Signs of Memory Demand Fading by 2029
Memory-chip stocks Micron, SK Hynix and Samsung have surged this year on strong AI data-center demand, with Micron up about 172%, Samsung 66% and SK Hynix roughly 81%. Nvidia CEO Jensen Huang told CNBC he does not expect memory demand to fade even by 2029, a longer horizon than most analysts have assumed. The recent sell-off followed news that China's CXMT plans to roll out a new architecture packing more memory cells into the same space by year-end, along with a Korean article warning of a flood of new supply. Still, Micron and SK Hynix have signed multi-year deals of three to five years with large customers, and SK Hynix plans to triple its wafer capacity by 2034. Counterpoint Research forecasts DRAM prices will fall 23% in 2028 versus 2027 but remain 230% above 2025 levels. The author suggests investors avoid overweighting this volatile group.
- 3 AI Infrastructure Stocks To Watch As Nvidia Spending Reshapes Data Center Funding
The article opens with SpaceX committing up to $40 billion of callable debt to buy Nvidia GPUs, while saying funding has "almost entirely" dried up for less established data center players. It highlights Samsung Electronics, Delta Electronics and SK hynix, which supply memory chips, power and cooling systems, and HBM for AI data centers. Samsung generates most revenue from Device Solutions at ₩286.4 trillion and has a market cap of ₩1,359.8 trillion, but its stock fell around 32% from its peak due to recurring margin calls and KRW instability. Delta Electronics has a market cap of NT$4,052.2 billion, and server power and cooling products recently accounted for more than 30% of its revenue, while SK hynix, valued at ₩929.3 trillion, cites management's outlook for DRAM demand growth of over 20% in 2026. The article also flags that slower AI infrastructure spending could affect pricing and margins.
- Michael Burry Backs Ken Griffin’s “Obvious” GPU Warning as Market Risk Multiplies
Michael Burry agreed with Ken Griffin's warning that GPU rental prices could go “into freefall” if supply exceeds demand, calling it “obvious to most with a working brain cell.” Griffin compared the risk to the telecom buildout of 2000, when more fiber was built than demand required and prices fell sharply. The mechanism would hit CoreWeave directly because its revenue comes from GPU rentals, and reach Nvidia and AMD through customer orders. The article notes Nvidia's fiscal 2023 downturn, when revenue was flat at $27.0 billion and gross margin fell to 56.9% from 64.9%. Rental prices for H100 chips are up 45% since December, and CoreWeave's operating margin was -0.3% in 2025, so it would feel a glut first.
- Jensen Huang Says Nvidia's Next-Gen Vera Rubin Chips Will Generate $40 Billion in Revenue per Gigawatt, Up From $25 Billion for Grace Blackwell. What That Means for NVDA's Growth Runway.
Nvidia says its next-generation Vera Rubin architecture could generate about $40 billion in revenue per gigawatt of computing capacity, 60% more than the roughly $25 billion from Grace Blackwell. CEO Jensen Huang said the platform, which combines GPUs, CPUs, NVLink connections, networking and software, lets customers do more computing without a matching increase in electricity use, a key constraint for AI data centers. Vera Rubin has entered production shipments, with purchase orders from major hyperscalers, AI cloud providers and equipment makers. Huang forecasts AI infrastructure spending of $3 trillion to $4 trillion by 2030 and expects Nvidia to sell twice as many chips in 2027 as in 2026. In the fiscal second quarter ended July 26, Nvidia reported $96.2 billion in revenue, up 106%, including $89 billion from data centers; the $40 billion figure is a potential opportunity rather than guaranteed orders.
- Nvidia (NVDA) Has Lost Its China AI Accelerator Market
Nvidia (NasdaqGS:NVDA) has effectively lost its China AI accelerator market after U.S. export controls restricted shipments of advanced GPUs. Specialist financiers are structuring large facilities backed by Nvidia GPU inventory, treating high-end chips as core collateral for AI infrastructure projects. Enterprise customers are also rolling out liquid-cooled, rack-scale agentic AI factories, including deployments built on Supermicro server platforms. According to the article, the loss removes a major growth pool for Nvidia's data center segment, putting more weight on non-China demand from neoclouds and sovereign AI projects, which analysts expect to support multi-year revenue expansion. The article also cites capital scarcity, rather than end demand, as the binding constraint for many neocloud and enterprise buyers.
Related markets
Latest news
- Alphabet Is Set to Become an Even Bigger Anthropic Shareholder After the IPO
Anthropic, one of the fastest-growing AI companies, could become the biggest IPO in history at a targeted $2 trillion valuation, above SpaceX's $1.77 trillion debut. Alphabet is estimated to own about 14%, starting with a 10% stake for about $300 million in late 2022 and early 2023, then investing $500 million more and agreeing to invest $1.5 billion additional. According to Anthropic's S-1, Alphabet has an exclusive option to buy up to $10 billion in additional shares at the IPO price and $20 billion in unused investment capacity. At $2 trillion, Alphabet's stake would be worth $280 billion, and the article suggests Alphabet will likely remain the second-largest shareholder behind Amazon, which holds 15%-20%. Anthropic's post-money valuation of $965 billion is already reflected in Alphabet's net income, and that value would more than double at a $2 trillion IPO.
- Sandisk Stock Has Been Cut Nearly in Half Since June. Should You Buy It Before Thursday's Report?
Sandisk (SNDK) shares trade near $1,262, about 46% below their record close of $2,335 on June 25, and have fallen roughly another 10% since October 15. The author says the stock depends on three factors: rising flash prices, tight supply, and growing data center sales. Sandisk guides fiscal first-quarter 2027 revenue to $10.3 billion–$10.8 billion, about 18% above the $8.97 billion of fiscal Q4, and CFO Luis Visoso said price increases are “modest.” Data center revenue rose from $440 million in fiscal Q2 2026 to $2.98 billion in fiscal Q4, about one-third of total revenue. The author leans toward waiting for the upcoming report and the fiscal Q2 outlook to see whether Sandisk is still raising prices, given the stock's volatility.
- One bank cuts savings rates to nearly 0%
Ngân hàng TMCP Sài Gòn (SCB) has cut online savings rates for newly opening individual customers to 0.1%–0.7% per year from October 26, with 12-month deposits at 0.6% and 24-month deposits at 0.7%. For a 100 million dong deposit, the article estimates interest of 600,000 dong over 12 months and about 1.4 million dong over 24 months, assuming the rate holds and there is no early withdrawal. The move follows a State Bank of Vietnam directive on October 21 that banks cut average rates on new deposits of 6 months or longer by at least 0.5 percentage points in late 2026. SCB has been under special control since 2022, typically keeps the lowest deposit rates in the market and rarely changes them, and has shrunk from nearly 240 transaction points to about 8 across 6 localities.
- Why Innodata Stock Crashed Today
Innodata (INOD) shares fell 26.4% as of 12:26 p.m. ET after reports of job cuts in India and the Philippines hit the news wires. According to termination emails reviewed by regional news outlets, the company reportedly laid off nearly 550 employees in India on Monday, plus an undisclosed number in the Philippines, which the article puts at more than 5% of its workforce. The company cited a “ramp-down of the business assignment” rather than individual performance, and the article suggests a major client unexpectedly pulled out of a large project, raising concerns about lower future revenue. Even after the steep drop, the stock still trades at 27 times forward earnings estimates, and Innodata is scheduled to report third-quarter earnings on Nov. 5, when the earnings call is expected to clarify the financial impact and whether other contracts are at risk.
- Meta's deal with AMD, Nvidia, Broadcom: Is circular financing a risk?
Madison and Speaker A discuss Meta's deal involving Broadcom, AMD and Nvidia, with Nvidia taking part in an equity issuance, and whether the circular nature of the financing is a concern. Madison notes that Mag 7 companies are mentioned throughout the S-1, and that circular funding has been common for these firms without causing major problems for investors before. The more interesting question is whether market patience is wearing thin for neocloud companies that need heavy funding to build infrastructure. Speaker A cites a Goldman report and Torsten Slok of Apollo saying AI spending will peak in the fourth quarter, along with Gartner's view that the downturn will be ugly when it comes, though not for everyone as large companies absorb smaller ones.
- “Shark” with over VND 23,000 billion sells millions of shares, still holds nearly 8% of company
Finnish fund PYN Elite Fund sold 1,038,000 DSE shares of DNSE Securities through order matching on the October 20, 2026 session, reducing its stake from 8.2% to 7.95% of charter capital and leaving it with over 34.06 million shares. DSE closed October 27 at VND 19,900 per share, making the shares sold worth about VND 2 billion and the remaining stake worth about VND 678 billion. Managed by Petri Deryng, the fund has over 27 years of experience in Asian markets and has invested in Vietnam since 2013, with assets under management of about €805 million (over VND 23,400 billion) as of its September report. The fund fell 6.34% in September versus a 3.5% drop in VN-Index and is down 12.67% year to date, with its largest holdings being STB (18.2%), HPG (14.3%) and MWG (10.2%). The fund still holds a positive long-term view of Vietnam's stock market, arguing that recent price declines have not fully reflected the underlying fundamentals.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.