Bank of America Raises Ciena Price Target, Cites AI Networking Demand
Bank of America has reiterated its buy rating on Ciena Corp. and significantly raised its price target from $355 to $550, citing strong momentum in the AI networking sector. The upgrade follows Ciena's stock performance, which has doubled in 2026 after nearly tripling in the previous year. Analyst Tal Liani describes Ciena as central to an optical super-cycle, driven by exploding capital spending from hyperscalers and massive data center buildouts scheduled for 2026 through 2028. The bank highlights a $7 billion backlog and increasing demand for bandwidth in both AI and non-AI data centers as key catalysts. Despite trading at more than 70 times forward earnings, BofA considers the valuation fair given the accelerated growth trajectory. The analyst projects Ciena's market share in 800G ZR pluggables will rise from 30% in 2025 to at least 50% in 2026, within a market expected to grow tenfold. This expansion is anticipated to push Ciena's cloud market share in optical networking beyond current levels, solidifying its position as a leading provider of networking equipment for artificial intelligence infrastructure.
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Bank of America Raises Ciena Price Target, Cites AI Networking Demand
Bank of America has reiterated its buy rating on Ciena Corp. and significantly raised its price target from $355 to $550, citing strong momentum in the AI networking sector. The upgrade follows Ciena's stock performance, which has doubled in 2026 after nearly tripling in the previous year. Analyst Tal Liani describes Ciena as central to an optical super-cycle, driven by exploding capital spending from hyperscalers and massive data center buildouts scheduled for 2026 through 2028. The bank highlights a $7 billion backlog and increasing demand for bandwidth in both AI and non-AI data centers as key catalysts. Despite trading at more than 70 times forward earnings, BofA considers the valuation fair given the accelerated growth trajectory. The analyst projects Ciena's market share in 800G ZR pluggables will rise from 30% in 2025 to at least 50% in 2026, within a market expected to grow tenfold. This expansion is anticipated to push Ciena's cloud market share in optical networking beyond current levels, solidifying its position as a leading provider of networking equipment for artificial intelligence infrastructure.
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