Arista Networks Stock Rallied, But Is It Now A Bet On Its Suppliers?

Arista Networks (ANET) stock has gained about 51% since mid-December, against about 12% for the S&P 500. Peers Dell Technologies (DELL) rose 293% and Hewlett Packard Enterprise (HPE) 135%, while Cisco Systems (CSCO) gained about 40%. AI demand is the obvious explanation, and it is real. But management linked its latest outlook raise to a better supply position, and the CEO says the industry is still short of parts. From here, the shares are a bet on those parts arriving.