Stifel Taps Ciena and Viavi as Top Applied Tech Stocks Amid AI Boom

Investment firm Stifel has identified Ciena (CIEN) and Viavi Solutions (VIAV) as leading opportunities within the Applied Technologies sector, according to a new analyst note. The firm's analysis points to sustained demand for data infrastructure and testing equipment, driven by the ongoing buildout of artificial intelligence systems and the scaling of advanced telecommunications networks.

Stifel's Top Pick: Ciena

Stifel ranks Ciena as its top stock in the sector, citing the company's strong position to capitalize on an expanding market. The firm projects Ciena's total addressable market (TAM) will reach approximately $50 billion by 2029, a figure that encompasses wide area networks and data-center interconnect.

A key differentiator noted by Stifel is Ciena's RLS Hyper-Rail line system, which was co-developed with a major hyperscaler. This, combined with a record backlog of $7.7 billion, signals robust future demand. The firm believes Ciena is poised to gain market share as AI adoption accelerates the need for advanced network capacity.

Viavi Positioned for Next-Gen Testing

Viavi Solutions was named Stifel's second-ranked stock, with its growth prospects tied to the expanding market for network testing equipment. Stifel anticipates the module test market will scale as next-generation 1.6T transceivers and systems are deployed commercially.

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The analysis also suggests that advancements in fiber and advanced packaging technology could further expand Viavi's addressable market beyond what is reflected in current financial models. This positions the company to benefit from the increasing complexity of telecommunications infrastructure.

Recent Corporate Developments

The positive outlook from Stifel comes alongside other notable activities for both companies, providing additional context for investors monitoring the stocks.

• Ciena (CIEN): Recently closed a private offering of $2.875 billion in convertible senior notes and appointed a new Chief Supply Chain Officer.
• Viavi Solutions (VIAV): Received a credit rating upgrade to BB from B+ by S&P Global Ratings and secured $1.1 million in EU funding to advance a 6G security project.