CIEN and NOK ride booming AI-driven optical networking demand, but differences in growth, valuation and supply constraints could determine the better buy.

Alphabet, Microsoft, Arista and Ciena are poised to benefit from booming cloud computing demand, fueled by AI adoption and expanding infrastructure.

Ciena secures a Space Norway contract to modernize Arctic subsea cables and deploy advanced networking technology, boosting capacity and connectivity.

Networking hardware is leading a broad technology rebound, and suppliers of optical links and Ethernet switches for AI data centers are drawing the biggest buying.

First Citizens Bank and Trust Co. bought a new stake in Ciena Corporation (NYSE: CIEN) in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 2,505 shares of the communications equipment provider's stock, valued at approximately $881,000. A number of other institutional investors

Ciena is rated Buy, driven by surging AI-related demand and robust backlog growth, with a 37% YoY revenue increase in Q3 FY2026. CIEN targets ~30% revenue CAGR through FY2029, with management guiding for a 50% adjusted gross margin and a 32–35% adjusted operating margin. Backlog reached $8.5B in Q3 FY2026 and is expected to exceed $10B by year-end, reflecting strong order momentum outpacing shipments.

Bank of America expects Ciena Corporation (NYSE:CIEN), the optical networking equipment maker, to deliver revenue growth of 35% to 40% in the calendar year 2026 as demand for artificial intelligence infrastructure outstrips available supply. The bank maintains a 'buy' rating on the shares with a $550 price target, supported by rising cloud-provider spending and expanding opportunities to connect data centres.

The sharp moves could partly be a reaction to recent cautious commentary on AI spending.