By Janet H. Cho

Arista Networks is poised to benefit from Google's new Virgo Network, which will be the networking system that underpins its artificial intelligence hypercomputer, according to analysts at Evercore ISI.

Evercore ISI analysts including Amit Daryanani wrote in a research note that Alphabet's Google's Virgo Network, unveiled in a blog post earlier Wednesday, is "technically significant" and "an incremental positive" for Arista Networks, a networking equipment maker. Virgo's architecture "maps directly to Arista's core product positioning in high-radix, high-bandwidth AI switching."

Arista provides connectivity for Google Cloud.

"We think an underappreciated aspect of ANET's story is the growing diversity of its growth," the Evercore analysts wrote. Arista is not only doing well with Meta Platforms and Microsoft, they said, but increasingly with Anthropic, Oracle, and Alphabet's Google.

The analysts maintained their Outperform rating on Arista stock and a $200 a share price target. Arista Networks' stock closed up 2.8% at $177.73 on Wednesday, setting a record closing high based on data going back to June 2014, according to Dow Jones Market Data. Arista's stock is up 36% this year and up 151% from 52 weeks ago.

Arista has publicly described powering many of the largest and most significant cloud and AI titan networks, with cloud and AI segments accounting for 48% of its total 2025 revenue.

The Virgo deployment is capable of linking 134,000 chips. The set up implies significant switching infrastructure will be needed, the analysts said, and if Arista captures even a portion of that hardware layer, "it represents a meaningful incremental revenue opportunity against an already strong backdrop."

Evercore noted that Arista's networking business has been on a steep growth curve, and that the company had set a goal of selling at least $1.5 billion in AI networking in 2025, "which it exceeded," and expects to roughly double its AI-related sales to $3.25 billion this year.

"The Virgo announcement provides further confirmation that the hyperscaler capex cycle driving ANET's AI networking growth is not slowing and if anything it is accelerating in both scale and architectural complexity," they added.

Write to Janet H. Cho at janet.cho@dowjones.com

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April 22, 2026 17:16 ET (21:16 GMT)

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