May 6 (Reuters) - Arista Networks ( ANET ) forecast

second-quarter revenue above Wall Street estimates following

upbeat first-quarter results on Tuesday, betting on growing

demand for its networking equipments amid the artificial

intelligence boom.

However, shares of the Santa Clara, California-based company

fell about 7% in extended trading, amid investor concerns over

broader market conditions and renewed tariff fears.

The company, which has a market value of $114 billion, has

seen its stock decline about 18% so far this year, pressured by

ongoing tariff-related worries.

Arista Networks ( ANET ) projects second-quarter revenue of about

$2.1 billion, compared with analysts' estimates of $2.02

billion, according to data compiled by LSEG.

Demand for Arista's products, such as ethernet switches and

routers used in data centers, has surged as companies increase

their investments in artificial intelligence infrastructure.

Moreover, the ongoing tariff war could help domestic

companies such as Arista secure additional contracts with

hyperscale clients, potentially boosting their market share and

revenue growth significantly.

"We surpassed $2 billion in revenue for the first time in Q1

2025 despite the unknowns around tariffs," said Chief Executive

Officer Jayshree Ullal.

The company's customers include some of the largest cloud

service providers, such as Microsoft ( MSFT ) and Meta Platforms ( META )

, which accounted for about 20% and 15% of its total

revenue, respectively, in 2024.

For the quarter ended March 31, Arista's revenue reached

$2 billion, compared to analysts' estimates of $1.97 billion.

On an adjusted basis, the company earned 65 cents per share

in the first quarter, beating analysts' estimate of 59 cents per

share.