Prediction: This Magnificent Artificial Intelligence (AI) Stock Will Keep Crushing Broadcom After Dec. 11

• Ciena whitethorn not beryllium arsenic celebrated arsenic Broadcom successful the AI space, but it boasts supercharged growth.

• Ciena benefits from the rapidly increasing request for high-speed information transmission successful information centers.

• The banal trades astatine a discount to the broader tech sector, perchance paving the mode for much upside.

• 10 stocks we similar amended than Ciena ›

Broadcom (NASDAQ: AVGO) has been gaining prominence successful the artificial quality (AI) spot marketplace acknowledgment to its application-specific integrated circuits (ASICs). The customized AI processors designed by the institution person helped it unafraid multibillion-dollar deals with hyperscalers and AI companies.

That's not surprising, arsenic these chips tin assistance little the operating costs of information centers portion boosting show erstwhile compared to graphics processing units (GPUs). As such, it is casual to spot wherefore Broadcom's maturation trajectory has been improving successful caller quarters, and the company's awesome gross backlog points to amended times ahead.

Importantly, Broadcom's steadfast maturation has translated into coagulated gains of 66% connected the marketplace this year. It is apt to extremity the twelvemonth connected a coagulated enactment pursuing the merchandise of its fiscal 2025 fourth-quarter results connected Dec. 11. However, Broadcom isn't the lone institution that's benefiting from the robust spending connected AI infrastructure.

Optical networking specializer Ciena (NYSE: CIEN) is besides witnessing an acceleration successful maturation acknowledgment to AI. The banal has registered stunning gains of 137% this year, which is much than treble the leap successful Broadcom's banal price. That rally could get different boost erstwhile Ciena releases its fiscal 2025 Q4 results connected Dec. 11, the aforesaid time arsenic Broadcom.

Let's spot wherefore that could beryllium the case.

Ciena sells optical networking components, routers, switches, and related bundle and services that alteration high-speed information transmission. Not surprisingly, the proliferation of AI has been a tailwind for its business. That's due to the fact that AI information centers necessitate high-speed networking to determination ample amounts of information rapidly to bid AI models and tally inference applications.

The institution provides information halfway interconnect (DCI) solutions, which alteration accelerated connectivity betwixt information centers, on with optical fibre networking. The request for these components is truthful beardown that Ciena is receiving much orders than it tin fulfill. As pointed retired by CEO Gary Smith connected its September net call:

Further grounds of beardown request was successful our Q3 bid book, which was, again, considerably supra gross and successful fact, sets a caller quarterly grounds for us. This relation summation successful orders we've seen successful caller quarters truly underscores however the Network is present cardinal to the underpinning maturation and monetization of AI.