Will Increasing Uptake of Ciena's WaveLogic 6 Extreme Buoy its Shares?

Ciena Corporation’s CIEN WaveLogic 6 Extreme (WL6e) — the industry’s first 1.6 Tb/s coherent optical technology — is set to be deployed by Cirion Technologies to enhance its digital infrastructure and meet the evolving demands of modern connectivity. The transformation is likely to boost Cirion’s terrestrial and submarine networks across Latin America and is expected to be the continent’s first 1.6 Tb/s single carrier wavelength deployment.With over 160 interconnected data centers spanning more than 60 cities across Latin America, Cirion will utilize Ciena’s WL6e technology to enhance connectivity between key data centers in the region, ensuring high-capacity and low-latency performance. This advancement is crucial for supporting bandwidth-intensive applications such as artificial intelligence (AI), the Internet of Things (IoT) and streaming services.Cirion’s decision to implement WL6e comes after the successful deployment of WaveLogic 5, which significantly improved network performance. With Ciena’s WL6e, Cirion is poised to optimize network efficiency, sustainability and scalability, essential for supporting the rapid adoption of cloud services, AI and other emerging technologies.Moreover, Cirion is upgrading the SAC East submarine cable, which connects St. Croix (U.S. Virgin Islands) to Brazil, by increasing channel speed to 1.2 Tb/s with WL6e. It is also set to implement Ciena’s GeoMesh Extreme combined with the 6500 optical platform and RLS Submarine Line Terminating Equipment on its new SAC-2 submarine route, part of the Firmina subsea system. Spanning 14,517 km, this cable system will link the United States, Brazil and Argentina, solidifying Latin America’s global digital connectivity. Ciena Corporation Price and Consensus Ciena Corporation price-consensus-chart | Ciena Corporation Quote Powered by WL6e, it will deliver 800Gb/s over 10,975 km and 1.2 Tb/s over 2,500 km for submarine cables. On terrestrial regions, WL6e will enable 1.6 Tb/s speeds for metro DCI and backhaul networks.Cirion’s network upgrade also includes the deployment of Ciena’s coherent aggregation routers — 8110, 8112 and 8114 — to enhance routing and aggregation capabilities. Also, Ciena’s Navigator Network Control Suite, featuring Liquid Spectrum analytics, will offer advanced management and control, allowing Cirion to monitor, configure and optimize its multi-layer network for better performance and reliability.Rapid Adoption of CIEN’s WLe6 Drives Top-Line MomentumThe company’s WaveLogic 6 Extreme is gaining steady traction. It has now become generally available, solidifying Ciena’s position as the only provider of 1.6 terabit capable coherent modems in the market, further enhancing its technological leadership. Revenues from WaveLogic 6E were recognized in the fiscal fourth quarter, with shipments made to multiple customers, including Verizon, euNetworks and One New Zealand, who have also publicly announced their trials and deployments. Solid sales of Ciena’s solutions are likely to fuel revenue growth and favor the stock movement. In January 2025, the WLe6 was deployed by Southern Cross Cable Limited to achieve a milestone of connecting the world's first transpacific 1 Tb/s single-carrier wavelength across its 13,500-kilometer live production network. It delivered seamless performance at 1 Tb/s over the longest single optical submarine cable segment globally. In November 2024, WLe6 was implemented by EuNetworks, a leading provider of critical bandwidth infrastructure, as Europe’s first 1.6 Tb/s coherent solution. In October 2024, the solution was adopted by Boldyn Networks to enhance its fiber network in New York and New Jersey through a scalable wavelength service that delivers up to 1.6Tb/s per channel. Boldyn Networks integrates advanced coherent technology with a simplified, server-like operational model using Ciena’s Waveserver platform, effectively reducing costs per bit and energy use. This offering will address customers' current and future growth needs, supporting speeds of 100Gb/s, 400Gb/s, 800Gb/s and up to 1.6Tb/s.CIEN’s Zacks Rank & Stock Price PerformanceCIEN currently carries a Zacks Rank #2 (Buy). Shares of the company have soared 59.9% in the past year compared with the industry's growth of 64.1%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderSome other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Keysight Technologies, Inc. KEYS and Hewlett Packard Enterprise Company HPE. IDCC presently sports a Zacks Rank #1 (Strong Buy), whereas KEYS & HPE carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally. In the last reported quarter, it delivered an earnings surprise of 5.10%.HPE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.84%. In the last reported quarter, Hewlett Packard delivered an earnings surprise of 5.45%. The company’s long-term earnings growth rate is 5.8%. Its shares have surged 45.6% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ciena Corporation (CIEN): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks