Bank of America lifted Ciena’s price target to $660 from $550 and maintained a Buy rating, citing surging AI-driven demand for optical networking as hyperscalers upgrade infrastructure. The bank forecasts 800G optics will capture 35.5% of the market in 2026, boosting Ciena’s revenue projections by $747 million for fiscal 2028.
Bank of America analysts raised the price target for Ciena to $660 from $550 and reiterated a Buy rating, attributing the increase to accelerating demand in its optical networking business.
Ciena is seen as a key beneficiary of the industry’s shift from 400G to 800G optics as AI and hyperscale cloud customers upgrade data center infrastructure.
The 800G ZR/ZR+ optics market is projected to expand nearly tenfold in 2026 and represent 35.5% of the optical market, with Ciena expected to hold roughly 30% share thanks to its efficient 3nm DSP platform.
Forecasts for Ciena’s fiscal 2028 revenue were increased by $747 million and profit estimates were sharply raised, reflecting sustained demand from AI-driven and traditional cloud networking investments.
