Ciena Corporation (CIEN) shares surged 5.85% in Tuesday's intraday trading session, following an upgrade from JPMorgan. The investment bank raised its rating on Ciena to "Overweight" from "Neutral" and increased its price target to $88, up from the previous target of $84.

JPMorgan cited an attractive entry point for Ciena after recent share price weakness, driven by investor concerns over the potential impact of DeepSeek's AI model efficiency on broader capital expenditure trends. However, the brokerage shrugged off these concerns, noting minimal near- to medium-term risks to Ciena's fundamentals.

The upgrade was primarily driven by JPMorgan's positive outlook for Ciena, supported by robust cloud spending, a recovering telecom capital expenditure cycle, and increased investments in data center interconnectivity from major network operators. These factors are expected to act as key growth drivers for Ciena in the coming quarters.