2 AI Stocks Down 48% to 70% to Buy Now and Hold for 10 Years

Yahoo Finance · 2026-10-28

Artificial intelligence shares recently experienced a broad sell-off due to renewed anxieties over sector expenditures, pushing key players well under their 52-week peaks while the Nasdaq Composite remains up roughly 12% year-to-date. This downturn has created attractive entry points for optical networking provider Ciena and AI connectivity specialist Astera Labs, both of which trade deeply discounted from recent highs despite surging underlying demand. Ciena reported fiscal third-quarter revenue of $1.7 billion, marking a 37% year-over-year increase for the period ending Aug. 1. The company boasted $8.5 billion in unfilled orders, with leadership anticipating the backlog to eclipse $10 billion by fiscal year-end. Furthermore, Ciena projects its addressable market will nearly double to $52 billion by 2029, fueled by the relentless data-moving demands of modern AI data centers. As a dominant force in photonics, Ciena has generated about 4.5 times the photonic revenue of its closest rival since 2022, expanding its market share from 45% to 70% over the same timeframe. These fundamentals underscore strong long-term potential for patient portfolios.

AI 시장 분석

Amid recent concerns over AI spending, major AI-related stocks have corrected 48% to 70% from their highs. However, companies like Ciena and Astera Labs are reporting solid earnings driven by surging data center demand. Ciena posted Q3 revenue of $1.7 billion, up 37% year-over-year, presenting an attractive entry opportunity for long-term investors.

상승 영향

AI — Surging data transmission and networking demand in AI data centers is driving earnings growth, with related companies reporting a 37% increase in revenue.
Semiconductors — Long-term benefits are expected for optical networking and related semiconductor suppliers due to structural demand expansion for AI connectivity and high-speed networking equipment.

하락 영향

Growth Stocks — Short-term investment sentiment remains dampened due to market concerns over the pace of AI-related spending and sharp stock price declines from their peaks.

DYAX 전담 분석

The vast data transmission demands of AI data centers are causing a surge in networking infrastructure demand, further strengthening Ciena's leading market position. The addressable market is expected to double to $52 billion by 2029, with an $8.5 billion order backlog supporting earnings growth.

Key watchpoints include the sustainability of future AI infrastructure investments and the actual revenue conversion speed of the order backlog. While a bullish reversal is expected if concerns over AI spending slowdown ease, short-term volatility could expand if additional profit-taking occurs within the sector.

AI가 생성한 분석으로 투자 자문이 아닙니다.

DYAX Investor Sentiment

Bullish (Long) 62% · Bearish (Short) 38%

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