Top AI Stock ANET Leads 5 Stocks Near Buy Points In Tough Market

AI stock standout Arista Networks (ANET) and Netherlands-based biotech Argenx (ARGX) lead this weekend’s watch list of 5 stocks holding in or near buy range despite tough market conditions. In addition to ANET stock and ARGX, the list includes Boeing (BA), Visa (V) and Baker Hughes (BKR), which provides equipment to oil and gas producers.


Both ANET stock and ARGX are part of the flagship IBD 50 list of leading growth stocks. Arista also was featured as IBD Stock Of The Day on Aug. 14.

Keep in mind that investors need to exercise serious caution now that the AI-led stock rally has been knocked off stride and is still looking for a floor. The surging 10-year Treasury yield, which is testing its highest level in 15 years, has helped take the steam out of growth stocks in particular, with the Nasdaq putting in three straight down weeks for the first time all year.

The coming week for the stock market could be pivotal, with earnings from AI-chipmaker Nvidia (NVDA) due on Wednesday and Fed chair Jerome Powell giving a high-profile speech on Friday. Be sure to read IBD’s The Big Picture every day to stay in sync with the market direction and what it means for your trading decisions.

ANET Stock

Arista sells computer network switches that speed up communications among racks of computer servers packed into “hyperscale” data centers. In 2022, Facebook-parent Meta Platforms (META) accounted for 26% of Arista revenue, while Microsoft (MSFT) chipped in 16%.

However, in an Aug. 1 note, KeyBanc analyst Thomas Blakey said that sales to enterprise customers are a growth engine and could rival its Cloud Titan data center segment in the second half of 2023.

Blakey hiked his ANET stock price target to 217 from 206, keeping an overweight rating, after Arista’s strong Q2 earnings beat.

Argus analyst Jim Kelleher said he sees Arista as uniquely positioned to benefit from accelerating growth in cloud-based data-center networking thanks to generative AI.

However, Arista has said it doesn’t expect meaningful AI revenue until 2025, as pilot projects turn into large…


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