Following a sharp correction in Nvidia's stock, investors shifted focus to Broadcom and Ciena, whose strong earnings reports fueled gains. The rotation underscores growing confidence in semiconductor and fiber optic infrastructure play.
- Broadcom reported $10.8B in Q4 revenue, beating estimates by 4%
- Ciena posted $1.03B in revenue, up 10% YoY
- AVGO shares rose 7.3% post-earnings; CIEN jumped 9.1%
- Strong demand noted in AI infrastructure and high-speed optical networking
- Investor rotation from Nvidia reflects shift to diversified infrastructure plays
- Both firms highlighted increased orders from cloud and telecom providers
After a significant pullback in Nvidia’s share price, market attention has pivoted toward semiconductor and telecom infrastructure leaders Broadcom and Ciena. Both companies delivered robust earnings results that reinforced investor confidence in their long-term growth trajectories. Broadcom reported fourth-quarter revenue of $10.8 billion, surpassing expectations by 4% and highlighting strong demand for its data center and networking chips. The company’s adjusted EPS reached $9.02, up 12% year-over-year, driven by continued strength in AI-related infrastructure. Ciena, meanwhile, posted revenue of $1.03 billion, a 10% increase from the same period last year, with adjusted EPS of $1.24—exceeding consensus estimates by 8%. The fiber-optic equipment provider emphasized record orders in high-speed optical transport systems, particularly from North American and Asian cloud providers. The market reacted decisively: Broadcom (AVGO) shares rose 7.3% in after-hours trading, while Ciena (CIEN) gained 9.1%, outpacing broader tech indices. Analysts noted the shift reflects a recalibration of risk, with investors seeking companies with clearer monetization paths in AI infrastructure beyond pure GPU exposure. The rotation also highlights the growing importance of integrated solutions—such as Broadcom’s full-stack data center offerings and Ciena’s optical networking platforms—in the current AI-driven capital expenditure cycle. This movement is particularly impactful for the semiconductor and telecom infrastructure sectors, where companies with diversified revenue streams and strong balance sheets are gaining favor. The momentum could extend into other infrastructure-focused tech names, especially those tied to 5G expansion, cloud interconnectivity, and next-gen data center deployments.