Ciena Corporation (CIEN) Surged Due to AI Boom

6 days ago 7

Soumya Eswaran

Mon, November 24, 2025 astatine 6:49 AM CST 3 min read

Madison Investments, an concern advisor, released its “Madison Small Cap Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. The 3rd 4th was hard for the Small Cap Fund. The small-cap index’s show was broad-based. The Madison Small Cap Fund (class Y) was down 1.3% successful the quarter, importantly underperforming the benchmarks. The underperformance was driven by banal enactment and exacerbated by a precise speculative market. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, the Madison Small Cap Fund highlighted stocks specified arsenic Ciena Corporation (NYSE: CIEN). Ciena Corporation (NYSE:CIEN) is simply a web exertion institution that offers hardware, software, and services for assorted web operators. The one-month instrumentality of Ciena Corporation (NYSE:CIEN) was -2.34%, and its shares gained 154.00% of their worth implicit the past 52 weeks. On November 21, 2025, Ciena Corporation (NYSE:CIEN) banal closed astatine $178.26 per share, with a marketplace capitalization of $25.2 billion.

Madison Small Cap Fund stated the pursuing regarding Ciena Corporation (NYSE:CIEN) successful its 3rd 4th 2025 capitalist letter:

"Our IT holdings were up modestly successful the quarter, but the Russell 2000’s tech stocks were up importantly more, astatine +15%. AI continues to beryllium the ascendant taxable and capitalist appetite for these stocks drove overmuch of the Russell 2000’s performance. Our champion performing tech investment, Ciena Corporation (NYSE:CIEN), is simply a nonstop beneficiary of the superior spending roar successful AI. However, our bundle investments underperformed owed to interest astir imaginable AI disruption. There is simply a broad-based fearfulness among investors that Artificial Intelligence could airs an existential menace to bundle concern models. This has led to wide based aggregate compression successful the bundle beingness crossed the marketplace headdress spectrum. Our presumption is that these fears are vastly overblown. Businesses beryllium connected exertion bundle to tally ngo captious operations. The conception that AI volition regenerate systems of grounds similar Enterprise Resources Planning (ERP) with AI agents is, successful our opinion, a hallucination. We usage the word hallucination alternatively facetiously arsenic that seems to beryllium the word utilized to picture errors made by AI output. It turns retired AI hallucinates rather a lot. By immoderate estimates astir 60% of the answers AI gives to prompts crook retired incorrect. And, according to a caller survey by MIT, 95% of caller AI endeavor projects are failing. This is not the look for a exertion that is astir to regenerate captious bundle applications that work."