Ciena Corporation (NYSE:CIEN) just lit up Wall Street, soaring up nearly 13% in early trading Thursdayits biggest single-day jump since 2019. The buzz? A bullish outlook that has investors brushing off an earnings miss. Fiscal Q4 adjusted earnings came in at $0.54 per share, below Wall Street's $0.66 target. But revenue? A cool $1.12 billion, edging past the $1.1 billion estimate. CEO Gary Smith wasn't shy about it eitherCiena is riding the AI and cloud wave, with demand for network bandwidth exploding. He's predicting big things: 8%-11% annual revenue growth over the next three years.

• Warning! GuruFocus has detected 10 Warning Signs with CIEN.

Wall Street's taking notice. While Q4 margins dipped to 40.9% from 43.1% last year, analysts are still eyeing Ciena as a key player in the AI-driven digital boom. The company's $1 billion share buyback plan initiated in October this year didn't hurt, signaling management thinks the stock is undervalued. And let's not ignore the bigger pictureCiena is locking in its position as the go-to for AI infrastructure, poised to snatch more market share as the digital transformation accelerates.

Here's the kicker: insider action shows execs cashing some shares on high valuations, but that hasn't dimmed investor enthusiasm. Yes, there are some challenges such as a slight revenue dip year-over-year. But with AI and cloud growth looking unstoppable, Ciena is flashing all the right signs for investors hungry for exposure to the next big thing in tech.