AI infrastructure names surged after the closing bell on Tuesday as Arista Networks (ANET) and Advanced Micro Devices (AMD) delivered better-than-expected quarterly results, highlighting heavy demand for data center and AI networking equipment.
Arista shares jumped more than 9% in after-hours trading after its third-quarter report. Revenue rose 58.5% year over year to $3.66 billion, beating the $3.33 billion analyst consensus and marking the company's fastest growth since its 2014 IPO. Adjusted earnings of $1.20 per share also topped expectations of $1.08. For the fourth quarter, Arista guided revenue to $3.9 billion to $4.0 billion and adjusted EPS to $1.26 to $1.30, both above estimates.
Management issued its first 2027 revenue outlook of about $18.5 billion, well above the $16.4 billion Wall Street had modeled. The company also raised its 2026 revenue forecast for the fourth consecutive time, now expecting $13.3 billion, equal to roughly 48% annual growth. Within that plan, AI networking revenue is expected to double to about $7 billion, while the cognitive campus business is projected to grow about 60% to roughly $2 billion.
CEO Jayshree Ullal called the quarter 'another memorable quarter' and said results exceeded even her high expectations. She tied the momentum to demand for AI, saying the strength 'highlights our increased relevance for the generative and agentic AI era.' JPMorgan raised its Arista price target to $270 from $250, and Rosenblatt reiterated a buy rating with a $280 target. Arista is collaborating with AMD, Arm, Broadcom and Qualcomm on AI network equipment, with Meta and Microsoft also listed as partners.
AMD shares rose about 7% after its own record quarterly earnings. Data center revenue nearly doubled to $8.55 billion, up 97% year over year. The company's strong 2027 outlook helped challenge broader AI stock weakness and added to the positive tone around AI hardware names.
