Arista Networks forecasts quarterly revenue above estimates on AI boom

(Reuters) - Arista Networks forecast third-quarter revenue above Wall Street estimates on Tuesday, anticipating strong demand for its networking gear from cloud computing companies and artificial intelligence applications.

The upbeat forecast highlights Arista's role in the sector, which has largely benefited from strong demand from cloud computing firms — some of the largest beneficiaries of the AI boom.

Rival Juniper last week reported lower-than-expected quarterly revenue and profit but noted many of its customers have digested inventory and are investing to bolster AI infrastructure.

Shares of the Santa Clara, California-based company rose more than 2% in extended trading. Meanwhile, chip major Advanced Micro Devices posted third-quarter revenue above estimates due to surging AI chip demand.

The company forecast third quarter revenue in the range of $1.72 billion to $1.75 billion, compared with estimates of $1.73 billion, according to LSEG data.

Its revenue for the quarter ended June 30 rose about 16% to $1.69 billion, beating analysts' estimate of $1.65 billion.

The company reported net income of $665.4 million, compared with $491.9 million a year ago.

On an adjusted basis, the company earned $2.10 per share, compared with profit of $1.58 apiece in the previous year.

(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)