The cloud megatrend is a significant positive force for Arista Networks (ANET), a pure-play high-speed datacenter switch vendor with a focus on software. Founded in 2004, the company shipped its first product in 2008. Since then, it has become a major disruptor in the switching market. I am adding Arista Networks to the Next Wave Portfolio based on the company’s solid growth profile (revenue this year is expected to be up 27%) and ability to continue to gain market share.

Buy limit of $62 and a stop loss of $49.