CIEN is well positioned for AI-driven optical network expansion, still early with buildout size unknown; distributed computing across data centers needs fast optical links, and the stock will track sector fluctuations.
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Thomas, I've suggested some names that you currently prefer. You prefer the Ciena company. But with these concerns about AI infrastructure spending and the potential slowdown, how do you view Sienna?
correct. If you only look at optical networks and ignore some of the fluctuations related to expansion processes, there is certainly expansion coming. We do not know exactly how big it is, but we are still in the early stages of this process, especially in the early stages of optical networks.
To support many of the use cases we expect for artificial intelligence, you will need computing capabilities at scale, even if you achieve some efficiency across software and other areas.
It must be fast and there should be no delays. This massive computing power needs to be distributed, not just on one cabinet or one data center, but across data centers in different geographical locations.
Therefore, we believe that optical network companies and Siena are well-positioned to take advantage of this. We will keep pace with the fluctuations in this sector.