Tech Stock Slaughter Hits Even AI Infrastructure Leaders… Market Cap Shrinks by 16 Trillion in a Day

Arista Networks (ANET) shares closed at $162.20 on the New York Stock Exchange on the 23rd, plunging 5.99% from the previous day. With technology stocks broadly under pressure in the U.S. market, concurrent selling drove Arista’s stock down nearly 6%. Its market capitalization dropped to about $204 billion (roughly KRW 286 trillion), erasing approximately $11.5 billion (KRW 16 trillion) in a single session.

Although Arista outperformed market expectations on both revenue and earnings in its first quarter of fiscal 2026, margin pressures and concerns over a lofty valuation triggered double-digit declines immediately after the results were released, heightening volatility. In June, the company introduced the 7060XE7 series—an AI-dedicated switch with 1.6 Tbps capacity—aimed squarely at data-center AI network infrastructure investment.

Arista Networks is a cloud-networking provider that supplies ultra-high-speed Ethernet switches and its proprietary operating system, EOS, to major cloud service providers and internet companies. The firm is characterized by its reliance on a small number of large customers—including Microsoft and Meta. Since its founding in 2004, CEO Jayshree Ullal has led a rapid expansion in the data-center switch market, earning Arista recognition as a core beneficiary of AI data-center infrastructure.