Ciena Stock After Its AI-Networking Rally: Bull and Bear…
By Tobi Opeyemi Amure
AI summary of the source article
Ciena closed at $443.65 on 6 October, up 13.8 percent in a sector-wide repricing of AI networking stocks driven by expectations that AI data-center bottlenecks are shifting to optical interconnects. The jump capped a roughly 29 percent gain across seven sessions. The company previously reported record fiscal third-quarter revenue of $1.67 billion, raised its fiscal 2026 revenue guidance to $6.42 billion, and targeted about $14 billion in revenue by fiscal 2029 with backlog expected to top $10 billion. At roughly 99 times trailing earnings, analysts note the valuation demands full execution of multi-year growth targets.
Why it matters
The move reflects shifting market demand toward optical systems and fiber equipment as data-center bottlenecks move from compute to network links. It signals high valuation multiples being assigned to AI infrastructure suppliers beyond chipmakers.
Key facts
- Ciena closed up 13.8 percent at $443.65 on 6 October on 6.4 million shares without issuing company news.
- Fiscal third-quarter revenue reached a record $1.67 billion, up 37 percent year on year, with adjusted EPS up 215 percent to $2.11.
- Ciena laid out fiscal 2029 targets of about 30 percent annual revenue growth from fiscal 2026 to reach roughly $14 billion.