Sporting host the Premier League leaders for the first-leg later on Tuesday just days after Arsenal were bundled out of the FA Cup by Championship outfit Southampton.
Borges said: “Arsenal are a great team and they will be like a wounded beast tomorrow, more focused on their individual capacity.
"Frankly, it will make it more difficult for us but we believe we can do something special tomorrow and do something that has never been done before by reaching the semi final.
“At this stage, I don’t think there are any favourites. Two teams who have made a positive path, we qualified in the top eight and there will be mutual respect. But I do believe our supporters, our fans, can make the difference and maybe beat a great team, maybe the best - or among the two or three best - in Europe.
“We know we are facing a great team, a mistake can be fatal and so one second of distraction can cost you.”
Gyokeres homecoming
On facing Viktor Gyokeres after his move from Sporting to Arsenal last summer, Borges says they'd be wrong to focus only on the Sweden striker.
He added: “To stop Gyokeres, we have four great defenders and any one of them can do that. It will be a big challenge but we will be ready. I wish Viktor all the best and I’m sure he will be very welcome back here.
“He had a great ambition and after talking to the management both sides got what they wanted. The player wanted to move, the club got what they wanted and Sporting will go on being a great club at European level as well.
“Viktor had to adapt, there was a period of adaptation and given his characteristics it took time but he is back to his level now. It was natural that the fans were a bit suspicious because it took time to score goals but he is back to his best now as a great striker.”