There are many ways to benefit from the fast-growing demand for artificial intelligence (AI) technology. From chip designers to semiconductor foundries to power companies to software specialists, investors looking to cash in on AI are spoiled for choice.
Companies like Palantir Technologies, Nvidia, BroadcomAnd others have become popular with investors looking to capitalize on the AI boom. This is not surprising, as these companies are leaders in their respective markets.
Where to invest $1,000 now? Our analyst team recently revealed what they believe 10 Best Stocks Join Stock Advisor when you buy now. View Stock »
But there’s one company that has surpassed them all in the past year and has the potential to beat its more famous tech peers once again in 2026: respect (NYSE: CIEN ).
Let’s take a look at the reasons why Ciena could be one of the best AI stocks for 2026 and longer.
Ciena manufactures optical networking components, routers, and switches that enable high-speed data transmission in telecom networks, enterprise networks, and data centers. It also provides software services that enable customers to automate and monitor their networks.
The advent of AI has supercharged demand for Sienna’s products. That’s because high-speed data transmission is key to handling massive data sets that enable AI model training and inference applications. For example, a powerful data center graphics processing unit (GPU) can be hamstrung by slow data transmission and inability to perform up to its potential.
This explains why customers like Meta Platforms Sienna has been flooded with orders for its components. The company received orders worth $7.8 billion in fiscal 2025 (which ended on November 1). That was above the $4.8 billion Ciena earned for the year. So the company is receiving new orders faster than it is fulfilling them.
Not surprisingly, the company’s growth is set to accelerate in fiscal 2026 after a 19% spike in its top line last year.
The chart also shows that analysts are bullish about Ciena’s prospects over the next two fiscal years. Not surprisingly, the data center networking market is poised to grow by 4x through 2033, driven by the growing adoption of AI, according to Grand View Research.
Sienna has been capturing a large share of this market. Its optical networking share reportedly rose four percentage points last year to 22%, according to the report Bank of America. A strong backlog indicates it could gain shares in 2026, potentially paving the way for further upside.
