Ciena rises as Rosenblatt upgrades on AI opportunity

[Ciena building at Gurgaon.]
photopixelbox/iStock Editorial via Getty Images

* Ciena (NYSE:CIEN [https://seekingalpha.com/symbol/CIEN]) shares rose 3% on Friday as Rosenblatt upgraded the telecom equipment company, citing additional opportunities in artificial intelligence.
* “We are upgrading CIEN to Buy on the Scale Across opportunity to network multiple AI
Data Centers into clusters. So far, Ciena has won one such deal with a Hyper Scaler to
connect two 100,000 GPU Data Centers 100km apart using WaveLogic 6 Nano 800G ZR pluggables,” Rosenblatt analyst Mike Genovese wrote in a note to clients.
* Genovese, who attended the company's investor day, added that the aforementioned hyperscaler is installing 20 petabytes of capacity, and thus boosting Ciena's
development of multi-rail amplifiers.
* “We estimate the revenues for this deal to be ~$200mn including 800G ZR and ZR+ pluggables and common equipment like amplifiers,” Genovese added. “We believe the scale across opportunity is just getting started, and Ciena is likely to win many more deals to interconnect Data Centers into clusters using pluggables or embedded DWDM depending on distance and performance requirements.”

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