AI stocks sold off last week on worries about AI spending, though the Nasdaq Composite is still up about 12% year to date. Ciena (CIEN) is down 70% from its recent high, yet fiscal third-quarter revenue rose 37% to $1.7 billion and it had $8.5 billion in orders awaiting fulfillment. Astera Labs (ALAB) closed Oct. 22 about 48% below its 52-week high, while Q2 revenue more than doubled to $392 million and Q3 revenue is guided to $540 million to $560 million. The author argues both companies benefit from long-term AI infrastructure demand, though competition from Broadcom is a risk. The author believes Ciena will outperform the market over the next decade.
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