Arista Networks Vs. Globalfoundries: Which AI Stock Is The Better Buy Ahead Of Q1 Earnings?
Portfolio Pulse from Surbhi Jain
Arista Networks Inc (ANET) and Globalfoundries Inc (GFS) are set to report their Q1 earnings, with analysts favoring GFS as the better buy due to its more favorable valuation and higher upside potential. ANET has seen significant gains, leading to a premium valuation, while GFS, part of the MANGO semiconductor group, is considered undervalued with a forward P/E of 23.66 compared to ANET's 32.28. Analysts predict a 22.62% upside for GFS, against a 6.69% for ANET.
May 06, 2024 | 7:52 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Globalfoundries is highlighted as an undervalued stock with significant upside potential ahead of its Q1 earnings, making it a preferred pick among analysts.
GFS's lower valuation and higher upside potential compared to ANET, especially being part of the MANGO group, positions it favorably for short-term growth post-earnings.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 95
NEUTRAL IMPACT
Arista Networks is expected to report strong Q1 earnings but faces concerns over its premium valuation after significant past gains. Analysts see limited upside potential.
Despite expected strong earnings, ANET's stock may see limited short-term movement due to its already high valuation and the relatively small upside potential analysts predict.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90