Jim Cramer Said Arista Networks, Inc. (NYSE:ANET) and Snowflake Inc. (NYSE:SNOW) Were Worth It

Jim Cramer endorsed Arista Networks, Inc. (NYSE:ANET) and Snowflake Inc. (NYSE:SNOW) as worthwhile investments. Cramer praised Arista Networks, Inc. (NYSE:ANET) for its strong earnings and market position, noting its role in the ongoing AI buildout. The company reported $3.04 billion in revenue and $1.02 in earnings per share, exceeding analyst estimates.

Arista Networks, Inc. (NYSE:ANET) also forecasted $3.3 billion in third-quarter revenue, surpassing expectations. Cramer attributed the stock's 49% increase over the past year and 52% year-to-date growth to the company's success in Ethernet networks and its software model, which yields strong margins. However, Cramer cautioned that reliance on a few big-tech customers poses a risk, as these companies might shift to custom products.

Despite this vulnerability, Arista Networks, Inc. (NYSE:ANET) maintains a lower short interest compared to Snowflake Inc. (NYSE:SNOW). On the other hand, Snowflake Inc. (NYSE:SNOW) is a software-as-a-service (SaaS) firm that enables data management and warehousing, benefiting from the AI era's demand for users to leverage their own data for creating AI models.

Snowflake Inc. (NYSE:SNOW) reported strong net revenue retention (NRR) of 126% in its FY27Q1 and had 779 customers with trailing 12-month product revenue exceeding $1 million. However, the firm faces potential competition from platforms such as DataBricks and Google's BigQuery, which could impact its performance. With a forward P/E of 169, Snowflake Inc. (NYSE:SNOW) has limited room for error.

Insider Monkey's data shows that 80 hedge funds tracked the stock in Q1 2026, a decline from 90 in Q4 2025, suggesting some funds may be more convinced about Arista Networks, Inc. (NYSE:ANET)'s potential.