# Wall Street defends AI plumbing stocks — accumulate optical networking picks

_AI-generated trading idea · LONG · CIEN, HPE, LITE, SMTC_

> Canonical page: https://commonquant.ai/research/for-you/wall-street-defends-ai-plumbing-stocks-accumulate-optical-ne--de5ccdfc-3e40-4ddd-980d-f4eb4cb5123f

Major banks are defending the companies that build the high-speed networking gear connecting AI data centers. Despite broader market noise, analysts are doubling down on their confidence in these behind-the-scenes hardware makers.

## Idea

While everyone focuses on the big AI chipmakers, the companies building the plumbing that connects those chips are seeing massive order books. Today, JPMorgan defended Lumentum, while analysts specifically highlighted Semtech and Ciena for their critical roles in AI data centers. Because these stocks are less crowded than the headline AI names, they have more room to run as data center build-outs accelerate. Buying a basket of these networking picks captures the next wave of AI spending.

## Key details

- Symbols: CIEN, HPE, LITE, SMTC
- Timeframes: D
- Tags: \#ai\_hardware, \#networking, \#analyst\_upside

## Community

- Upvotes: 12
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Semtech (SMTC): 224G Optical Chips Strengthen Its Role in AI Data Center Interconnects](https://finance.yahoo.com/sectors/technology/articles/semtech-smtc-224g-optical-chips-192858365.html) — Yahoo Finance
- [Lumentum (LITE): JPMorgan Pushback Helps Keep the AI Optical Networking Case Intact](https://finance.yahoo.com/markets/stocks/articles/lumentum-lite-jpmorgan-pushback-helps-193000476.html) — Yahoo Finance
- [Ciena (CIEN): AI-Driven Connectivity Demand Is Turning Into Stronger Revenue Visibility](https://finance.yahoo.com/markets/stocks/articles/ciena-cien-ai-driven-connectivity-192844170.html) — Yahoo Finance

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