On August 24, Ciena fell 3.83% in regular trading, trading at $375.0/share, with turnover of $33.88 million. The decline was driven by a broad selloff across the optical communications sector as market narrative shifted from computing power scarcity to expectations of a phase of computing overcapacity.

On the news front, Meta announced plans to launch a cloud infrastructure business and rent out idle AI computing capacity to external clients, which markets interpreted as a signal that the tech giants' AI arms race is cooling. This triggered panic selling across upstream hardware supply chain names. Within the Communication Equipment sector, Applied Optoelectronics plunged 16.98%, Lumentum fell 5.86%, and Nokia declined 2.74%.

Adding to the pressure, Bank of America recently slashed its price target on Ciena to $550 from $660 while maintaining a Buy rating, citing supply constraints that continue to cap full-year revenue upside. The stock has now fallen over 35% since last quarter's earnings. BofA noted demand remains robust, with key catalysts including backlog conversion, continued cloud growth, and the 800G pluggables ramp ahead of Q3 results scheduled for September 4.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)