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Ciena's revenue could grow up to 40% as AI demand outstrips supply, says Bank of America

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.

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Related tickers and likely impact

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Nvidia

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MarketUS stocks
SectorInformation Technology
IndustrySemiconductors
Market cap$5.5T
Close on 10/12/2026226.32
Change that session-1.29%
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Impact is scored by AI from the headline and may be wrong. It is not investment advice.

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