Cisco’s market cap is 10x because it is in a lot more markets than just DC switching.
If, and it is a huge IF, ANET can triple or quadruple their market share they would be at $6b/yr while Cisco is already at $6b/Q.
When NVIDIA hit the approx $6b/yr revenue mark, they were probably valued around $65b. Difference is they had 4 distinct markets, and not 1.
Last I will say about ANET, because I appreciate this board and have no desire to be a contrarian for contrarian’s sake. I have over a decade at one of the largest Channel VARs in the IT space. It is arguably the space I know the best, yet I wouldn’t invest in any of the top server, storage, or networking companies. Arista isn’t even on the radar, honestly. This tells me it really is a cloud giant play, and if you feel comfortable predicting how AWS, Azure, Google Cloud, and others will continue to build their infrastructure, then invest away. If you think those giants won’t develop their own competing switching gear, ask NVIDIA if any of those giants are making their own AI/DL chips. Just too much risk and uncertainty, long-term, for me. If you think the best products win in the IT space, look at Sun, or Hitachi, or Juniper, etc…
I wish all of you good luck, sincerely, and I do expect ANET will continue to grow in the short-term, it just doesn’t fit for a LTBH for me based on the industry it is in, the lack of diversity in markets (TAM), and the already large valuation and great run it has had the last couple of years.
-Dreamer