Portsmouth boss Harry Redknapp backed Arsenal to challenge for the Premier League title after his side were beaten 3-1 at the Emirates.
And Redknapp understands Arsene Wenger's reluctance to spend big on transfers after watching the young Gunners, assembled for under £30million, cruise to a dazzling victory.
Emmanuel Adebayor rifled home the opener from the spot after David James had brought down Robin van Persie and the impressive Cesc Fabregas added the second from close range.
A quick free-kick from Fabregas then enabled Tomas Rosicky to score before a 62nd-minute strike from Kanu gave Pompey some reward for an afternoon of toil.
Only the 50th-minute dismissal of Philippe Senderos darkened Arsenal's day, with the Swiss defender shown a straight red for blocking Kanu.
Former Gunners vice chairman David Dein had declared the club needs a 'huge injection of cash' if they are to avoid getting left behind by their bigger spending-rivals.
But Redknapp believes the current squad is capable of dethroning champions Manchester United.
He said: 'I don't know if Arsene has to spend money. He's got talented young players here. They bring these kids in from everywhere.
'I don't think he needs to spend massive money. Van Persie and Adebayor are two fantastic players. They are a threat to anybody. Then there are also people like Fabregas. Their side is full of quality.
'When they move the ball and pass it, there is no-one better than Arsenal. They will be right there in the title race. They will be pushing all the way.
'The two wide players Rosicky and Alexander Hleb are fantastic and their quality on the ball is incredible.'
Wenger revealed Arsenal's third league victory of the season, which lifts them to second in the table, was a joy to watch.
'We are super ambitious and of course that creates a pressure but we can live with that,' he said. 'This team has been built to have an offensive personality. That means it is very important they express themselves.
'When you watch a game, you see that. We always try to go forward, even with 10 men and two minutes to go. I personally enjoy watching my team play like that. You don't cheat people.
'They feel the vibes coming out of the team when they sit in the stands. They sense when there is something positive coming out of the team.'