On August 24, Ciena fell 3.03% in pre-market trading, trading at $385.84/share, with turnover of $962,600.

On the news front, the optical communications sector has come under significant selling pressure as market narrative shifted from computing power scarcity to computing power periodic oversupply. Meta announced plans to launch a cloud infrastructure business that would rent out idle AI computing power to external clients, which the market interpreted as a signal that the tech giants AI arms race is cooling. This triggered panic-driven capital flight from upstream hardware supply chains including optical networking.

Adding to the pressure, Bank of America Securities recently slashed Ciena's price target sharply from $660 to $550, while maintaining a Buy rating. BofA noted that supply constraints continue to limit upside to full-year revenue expectations, with the stock having already fallen more than 35% since last quarter's results amid a broader de-rating across the optical group. The firm highlighted that Q3 results, due September 4, will be closely watched for backlog conversion progress.

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