Ciena Corporation (CIEN) "Is A Terrific Company," Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Warned About Big Risk To Big Tech. Ciena Corporation (NYSE:CIEN) is one of the stocks Jim Cramer recently discussed.

Ciena Corporation (NYSE:CIEN) is a telecommunications hardware and software provider. The firm’s shares were among the top performers on Thursday after they gained a whopping 23% during the day’s trading. Ciena Corporation (NYSE:CIEN)’s stock soared after the firm’s fiscal third quarter earnings saw it report $0.67 in earnings per share and $1.22 billion in revenue, which beat analyst estimates of $0.53 and $1.17. Investors were also joyous after Ciena Corporation (NYSE:CIEN) linked the growth to AI demand. Cramer praised the firm’s earnings results:

“Ciena, which is a terrific company involving alarms, technology equipment for telecom. A great quarter.”

Here is what Ciena Corporation (NYSE:CIEN)’s management said about AI during its earnings call:

“And in fact, three of our top five customers in Q3 were service providers. This includes renewed investment in building out their core infrastructure, in part driven by strong demand from cloud providers for managed optical fiber networks or MOFN. It also reflects strong enterprise demand pull through and service providers increasing focus on the role they can play in delivering AI to the edge as more enterprises move workloads to the cloud and AI-driven applications get adopted over time. It is clear that both our cloud and service provider customers are focusing their network investments where bandwidth and network scale are critical to support and enable AI traffic growth to drive monetization and adoption. This dynamic is reinforcing the significance of the current and long-term opportunity for both our systems business and our interconnects portfolio, including over time for inside the data center.”

While we acknowledge the potential of CIEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.