Arista Networks: Riding the data center boom
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NYSE: ANET
Arista Networks
Today’s Change
(2.67%) $4.90
Current Price
$188.65
Key Data Points
Market Cap
$238BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$183.59 – $190.44
52wk Range
$114.52 – $214.89
Volume
8.1M
Avg Vol
8.2M
Gross Margin
63.00%
Arista makes networking equipment that helps connect the enormous number of servers, GPUs, and other computing infrastructure packed inside modern data centers. And with data center spending accelerating to record highs, Arista is exactly where it needs to be to take advantage of that momentum.
Its latest quarterly filing proves that claim. The company just delivered its first $3 billion (in revenue) quarter while maintaining a GAAP (generally accepted accounting principles) operating margin of 45%. Lastly, GAAP diluted EPS landed at $.095 per , up from $0.70 last year.
“As we deliver our first $3 billion quarter in Q2 2026, it is clear that our Arista 2.0 platform strategy is compelling,” said CEO Jayshree Ullal. Wall Street seems to agree. According to BarChart, Arista has a consensus strong buy rating with all green marks across the board. Meanwhile, the highest target price suggests up to 57% potential upside.
Micron Technology: Cashing in on the AI memory cycle
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NASDAQ: MU
Micron Technology
Today’s Change
(-0.78%) $-7.55
Current Price
$966.78
Key Data Points
Market Cap
$1.1TMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$958.26 – $989.96
52wk Range
$114.25 – $1255.00
Volume
21.8M
Avg Vol
48.2M
Gross Margin
72.60%
Dividend Yield
0.05%
Of course, we can’t talk about artificial intelligence without mentioning Micron. The memory maker struck gold when it shifted its focus to higher-margin high bandwidth memory (HBM) production to meet hyperscaler demands. It’s now one of the top three memory-chip manufacturers in the world, right up there with Samsung and SK Hynix.
That market leadership is reflected in its income statement. In the quarter reported in late June, the company notched $41.5 billion in revenue, representing massive 346% year-over-year growth. The vast majority of this revenue came from its DRAM technology umbrella, under which HBM falls. Meanwhile, diluted earnings per reached $25.11 compared to last year’s $1.91.
Current-quarter guidance makes the picture even rosier. Revenue is slated to hit $51 billion while diluted earnings are expected to reach $32, both on the high end. It may also be why analysts rate Micron a strong buy, with the highest target price suggesting the stock could more than double over the next year.
Eli Lilly: Betting big beyond AI
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NYSE: LLY
Eli Lilly
Today’s Change
(0.88%) $11.00
Current Price
$1,255.40
Key Data Points
Market Cap
$1.2TMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$1230.00 – $1271.22
52wk Range
$694.23 – $1292.65
Volume
2.5M
Avg Vol
3M
Gross Margin
83.40%
Dividend Yield
0.53%
Rounding out this list is Eli Lilly, which has absolutely nothing to do with the AI supercycle. Instead, it’s digging through a different gold rush: diabetes and obesity treatments.
In its recent quarterly report, the company reported revenue growth of 48% to $23 billion. That growth was driven by Mounjaro and Zepbound, Eli Lilly’s blockbuster GLP-1 drugs. Mounjaro revenue jumped 91% year over year to nearly $9.9 billion, while Zepbound generated about $4.9 billion, up 46%.
The sheer scale of demand has prompted Lilly to raise its full-year 2026 revenue guidance to $85 billion to $87 billion. At the same time, high target prices indicate a 28% potential upside. That just goes to show that its tirzepatide-based drugs are riding a wave that shows no sign of cresting.
The common thread
All three companies have the scale and brand recognition that come with their market leadership. But the most common thread between them is that secular tailwinds are driving their numbers — and their stock prices — higher.
That doesn’t make them risk-free. No stock is, even in a market that feels this optimistic. But if you’re looking for growth stocks that could outperform in the second half of 2026, Arista, Micron, and Eli Lilly bring a mix of momentum, real earnings power, and narratives that investors continue to reward.
That’s the setup for the kind of move that can feel a “skyrocket” by year-end, even if the path there is not perfectly smooth.
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•By Catie Hogan
Micron Fell 7% on Tuesday. Is This an Opportunity to Buy?
•By Daniel Sparks
About the Author
Rick is a Wall Street Journal best-selling author with over 20 years of experience trading stocks and options. The most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News, cover his work. His passion is business, and he works tirelessly to deliver content in an easy-to-understand manner. In 2018, Rick wrote The Financially Independent Millennial to inspire his readers with his story about becoming financially independent at age 35 despite not learning about money when he was younger. His books are easy to read and often refer to key points that “He would tell his younger self.” When not thinking about business, Rick writes (mainly about cruise ship travel) for his travel blog and is an enthusiast of fast cars, technology, & cooking.
Stocks Mentioned
Micron Technology
NASDAQ: MU
$966.78
(-0.78%)-$7.55
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
Eli Lilly
NYSE: LLY
$1,255.40
(+0.88%)+$11.00
Arista Networks
NYSE: ANET
$188.65
(+2.67%)+$4.90
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
Fool.com
