Arista Networks forecasts upbeat revenue as AI hype boosts cloud gear demand
Technology
Shares of the Santa Clara, California-based company surged 11.7% to $173.24 in after-market trading
(Reuters) - Arista Networks (ANET.N) forecast quarterly revenue above estimates after delivering better-than-expected results on Monday, supported by higher demand for its cloud networking gear following a boom in artificial intelligence (AI) applications.
Shares of the Santa Clara, California-based company surged 11.7% to $173.24 in after-market trading.
The third-quarter forecast underscores robust demand from customers including Microsoft (MSFT.O) and Meta Platforms (META.O) as they snap up Arista's latest 7800 series of switches designed to support AI workloads.
Both Microsoft and Meta said last week they would continue investing in data center infrastructure, including networking equipment, to support functionality centered on AI.
Arista sees third-quarter revenue in the range $1.45 billion to $1.5 billion, higher than analysts' estimate of $1.39 billion, according to Refinitiv data.
In the second quarter ended June 30, its revenue rose 39% to $1.46 billion, beating expectations of $1.38 billion. The company earned $1.58 per share, on adjusted basis, also higher than estimates of $1.44.
