2 weeks ago
11
Harsh Chauhan, The Motley Fool
Fri, February 27, 2026 astatine 8:20 AM CST 4 min read
Artificial quality (AI) infrastructure stocks person been connected a rotation implicit the past fewer years, driven by monolithic investments successful information centers that person supercharged the maturation of respective companies successful this sector.
From spot designers to foundries to powerfulness companies to server manufacturers, the huge AI information halfway spending has been a tailwind crossed aggregate verticals. Networking constituent manufacturers person besides benefited from investments successful AI infrastructure. That's not surprising, arsenic AI information centers necessitate accelerated networking and precocious bandwidths to transport ample datasets quickly. This ensures that dilatory transmission speeds don't hamstring exemplary grooming and inference applications.
Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »
This explains wherefore shares of Ciena (NYSE: CIEN), a supplier of high-speed optical networking components and information halfway interconnect (DCI) products, changeable up 176% successful 2025. But volition this AI banal beryllium capable to prolong its momentum successful 2026, oregon should investors see booking profits and look elsewhere to capitalize connected the AI infrastructure market's momentum?
Let's find out.
The bully quality for Ciena investors is that the stock's rally has continued successful 2026. Its shares are up by 47% arsenic of this writing. There is simply a accidental that it tin prolong its terrific momentum connected the backmost of a bump successful AI information halfway spending this year. Gartner estimates a 32% leap successful spending connected information halfway systems successful 2026 to $653 billion, paving the mode for Ciena to timepiece stronger maturation this year.
In fact, Ciena expects its maturation complaint to accelerate successful fiscal 2026 (which started successful November 2025) to 24% astatine the midpoint of its $5.7 cardinal to $6.1 cardinal guidance range. That'll beryllium an betterment implicit the 19% gross maturation it clocked successful the erstwhile fiscal year. Importantly, Ciena has entered the caller fiscal twelvemonth with a grounds backlog of $5 billion, which it says is capable to enactment the acceleration of its maturation this year.
It's worthy noting that Ciena received $7.8 cardinal successful orders for its optical networking, routing, and switching components past year, exceeding the company's yearly gross of $4.8 billion. A akin script tin beryllium expected successful 2026 arsenic well. Management pointed retired connected the December 2025 net telephone that "we spot indications of beardown request continuing into '27 and beyond, giving america exceptional visibility and assurance successful our outlook and medium-term expectations."
English (CA) · 
English (US) · 
Spanish (MX) ·