The artificial intelligence (AI) boom has been underway throughout 2024 despite many legacy technologies still undergoing normalization after a fantastic post-pandemic reopening surge in 2021. The acceleration of AI deployment is helping to lift legacy technologies like cloud computing, virtualization, networking, and hard disk drives (HDDs) as enterprises work through the inventory glut. Here are two computer and technology sector stocks that are gaining from AI demand and seeing their cloud computing and legacy businesses accelerate again.
Ciena: Cloud Providers Are Leading the AI Infrastructure Buildout
As a legacy technology company, Ciena Co. (NYSE: CIEN) is well known for helping build out the internet with its optical fiber and networking solutions. AI requires fast connectivity to transfer oceans of data. Ciena's products are essential for AI deployment, and data centers are a top customer. Ciena's optical transceivers enable data to be transmitted long distances at the speed of light, literally using light signals for low latency. Data center interconnect (DCI) expands beyond just within a data center but enables data to swiftly pass beyond to AI platforms, connecting multiple data centers and cloud providers.
Connecting the Cloud Giants and AI Platforms
Ciena's customers include some of the largest cloud providers like Alphabet Inc.'s Google Cloud as they build out their networks to fortify capacity for the exponential growth of AI data traffic. The ...
