Bank of America expects Ciena (CIEN) revenue to grow 35% to 40% in calendar 2026 as AI infrastructure demand outstrips supply, and keeps a buy rating with a $550 price target. Revenue from direct cloud customers is forecast to rise 69% at the midpoint, making it the main growth driver alongside the RLS and Waveserver platforms. Pluggable optical transceivers are expected to triple year on year, and Meta's data centre out-of-band management business could generate $200 million in 2026. Growth above 30% annually is seen over the longer term through Hyper-Rail and new data centre customers, backed by an expected backlog above $10 billion. However, the pace of expansion depends on supply availability and the delivery of new customer programmes.
Summary written by Upside AI from the original article. Read the source for full details.
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Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.5T |
| Close on 10/12/2026 | 226.32 |
| Change that session | -1.29% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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