The Gunners put themselves in a commanding position to reach the quarter-finals after a stunning 7-1 victory over PSV Eindhoven, a historic result that made them the first team to score seven goals in a Champions League away knockout match.
Arsenal's emphatic win came at a crucial time, following two underwhelming performances and seeing Liverpool extend their lead at the top of the Premier League table.
Despite the dominant display, Ferdinand remains unconvinced about Arsenal's ability to go all the way in Europe. He believes they are only the fifth-strongest team in their half of the draw, where they could face Real Madrid or Atletico Madrid in the quarter-finals before a potential semi-final against Liverpool, Paris Saint-Germain, Aston Villa, or Club Brugge.
'I think they're probably the fifth-best team in the Champions League on that side of the draw, Ferdinand said on his YouTube channel. 'I'm not even talking about the whole competition, on that side of the draw.
'They're behind Liverpool, Real Madrid, Atletico Madrid and Paris Saint-Germain. Arsenal are the fifth-best team on that side of the draw. That's mad.
'You can't have a CDM [Mikel Merino] playing up front when you're trying to win the Premier League and Champions League. They had an opportunity in January [to sign a new striker] but there wasn't loads available.
'I definitely would have made a beeline for a centre-forward, 100 per cent. Kai Havertz has done an okay job but you need an out-and-out No. 9, surely.'
Ferdinand, who won the Champions League with Manchester United, discussed Arsenal's European prospects alongside TNT Sports commentator Darren Fletcher. Fletcher was even more dismissive of Arsenal's chances.
'I think they're miles off,' Fletcher said when asked whether Arsenal could lift the trophy. 'You just said they're fifth in the half of the draw they're in.
'You then look at Barcelona and Bayern Munich on the other side of the draw. You can't win it from there. I think they're miles off winning a Premier League, never mind the Champions League. I think they've gone backwards. I don't see it.'
Arsenal's route to the final appears particularly challenging, as they share their side of the draw with the reigning Champions League winners Real Madrid, Premier League leaders Liverpool, and French champions PSG.
Meanwhile, the other half of the draw features Bundesliga frontrunners Bayern Munich, La Liga leaders Barcelona, and last season's finalists Inter Milan.
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