On September 29, Ciena rose 3.38% in regular trading, trading at $354.48/share, with turnover of $91.90 million. The stock rebounded alongside the broader optical communications sector, which had sold off sharply in the prior session amid heightened geopolitical tensions.

Morgan Stanley highlighted that optical communications industry capacity is expected to be nearly sold out over the next 12 to 18 months, reinforcing bullish sentiment across the sector. Peers Lumentum surged 8.36% and Applied Optoelectronics gained 6.39% in the same session. Earlier, Evercore ISI had upgraded Ciena to outperform with a price target of $550, citing its optical networking business as a critical bottleneck in AI infrastructure buildout.

Fundamentally, Ciena reported fiscal Q3 adjusted EPS of $2.11, a 215% year-over-year increase that significantly beat the $1.73 consensus estimate, while raising its full-year revenue guidance to $6.42 billion. Morgan Stanley also noted Ciena expects roughly 30% compound annual revenue growth over the next three years, supported by an estimated $12 billion data center market opportunity by 2029.

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