Shares of Ciena rose Thursday after the networking company reported better-than-expected quarterly earnings as artificial-intelligence continued to drive demand for its products.

The company posted adjusted earnings of $2.11 a share in the fiscal third quarter ended Aug. 1, up from 67 cents a year ago and above Wall Street's expectation of $1.73. Revenue grew 37% to $1.67 billion, beating the analyst consensus call for $1.64 billion, according to FactSet.

Ciena also raised its fiscal-year revenue guidance and forecast fiscal fourth-quarter revenue that was above Wall Street expectations at the midpoint.

Ciena stock advanced 7% to $379.85 in premarket trading on Thursday after ending Wednesday down 1.7%. Shares had advanced 51% this year as of the closing bell on Wednesday on the back of strong demand from AI and data-centers for cabling and communications systems. The stock, however, has declined 43% since June 2.