TD Cowen analyst Sean O'Loughlin raised the firm's price target on Ciena to $675 from $425 and keeps a Buy rating on the shares as part of an off-cycle compute semiconductor earnings preview. AI capex dollars continue to move higher as investors seek for the next "bottleneck" to infrastructure builds, the analyst tells investors in a research note. TD says this has driven a "bifurcation within the infrastructure trade" as the largest accelerator companies underperform while optical names trade higher on expectations of coming shortages. TD upped estimates citing ongoing momentum. The firm no sees $1.3 trillion in data center silicon spending by 2030, up from $1.2 trillion previously.
