Telecoms and AI Infrastructure Earnings Preview: DY, CIEN and AVGO

Amid increased scrutiny of the ongoing artificial intelligence (AI) boom, investors want confirmation that data center expansion, the shift from copper to optical networking, and federal broadband programs in the US are still supporting growth.

Dycom Industries [DY] is seeking to expand its data center exposure after acquiring a power solutions company. Ciena [CIEN] will need to support its elevated valuation with strong growth and order trends, while Broadcom [AVGO] is expected to provide clarity on AI chip demand and any production limits at semiconductor foundries. Ahead of earnings, OPTO takes a closer look at the prospects for these stocks and the wider telecoms space. 

Sector Talk: Copper to Optics

The push for low-latency and faster data transfer inside and between data centers is forcing a structural shift in the telecom infrastructure sector. Copper cables are being replaced by fiber optics. Experts describe it as replacing “electrons with photons” to move data using light at higher speeds and lower power consumption.

All three telecom and AI infrastructure companies covered in this earnings preview — Dycom Industries, Ciena and Broadcom — have exposure to this shift at different layers. Dycom builds and deploys fiber, Ciena supplies optical transport systems and Broadcom designs the networking silicon and custom chips for hyperscalers.

So far, signals from hyperscaler capex plans suggest the copper-to-optics transition is accelerating. Copper interconnects are reaching their limits under the weight of AI workloads constrained by power use, heat generation and data loss at higher speeds.

The launch of Nvidia’s [NVDA] next-generation compute platform, Rubin, in January 2026 was widely viewed as a turning point. Many industry observers saw it as confirmation that optical interconnects are becoming central to AI data center architecture. 

At the heart of the Rubin platform are silicon photonics networking switches built to enable data centers to connect more GPUs together at lower energy and operational costs.

“By integrating silicon photonics directly into switches, Nvidia is shattering the old limitations of hyperscale and enterprise networks and opening the gate to million-GPU AI factories,” said Jensen Huang, founder and CEO of Nvidia, during the release of the Spectrum-X and Quantum-X optics networking switches in March 2025.

On March 2, Nvidia announced a $2bn investment in lasers and optical systems provider Coherent [COHR], securing long-term access and purchase commitments for advanced optical networking products. Earlier in January, specialty glass maker Corning [GLW] signed a supply agreement worth up to $6bn to supply optical fiber connectivity solutions to Meta Platforms [META].

Dycom Industries: Fiber Backlog and Data Center Expansion

Dycom is expected to report its Q4 and fiscal 2026 results on March 4 before the market opens. 

The company enters the earnings season on strong footing having posted record revenue, profitability and backlogs in Q3. Dycom has been a primary beneficiary of the US government’s $42.45bn Broadband Equity Access and Deployment Program that aims to deploy and upgrade high-speed internet infrastructure across the country. 

Earlier, Dycom guided total contract revenues for the year ended January 2026 in the range of $5.35bn to $5.43bn, implying about 13.8% year-over-year growth at the low end.

Investors will focus on backlog strength to confirm steady fiber demand. The acquisition of data center-focused electrical infrastructure firm Power Solutions should also help Dycom diversify beyond telecom customers and capture more value from AI infrastructure projects.

DY stock is up 155.82% over the past year, as of March 2, having hit a record high of $445.53 on February 12, 2026.

Ciena: Optical Demand and Valuation Test

Ciena Corp is expected to report its Q1 earnings for the three-month period ended February 2026 on March 5. 

Ciena sells high-speed optical networking systems that move data between and around data centers, making it a direct play on bandwidth upgrades. The stock recently reached an all-time high of $365.90 ahead of earnings.

Having surged 344.55% over the past year, Ciena is currently trading at high valuation multiples with a forward P/E ratio of 66.37 and a forward P/S ratio of 8.24, leaving little room for disappointment. 

For FY 2025, the company reported 19% annual revenue growth to $4.77bn and guided fiscal 2026 revenue growth to accelerate between 19.5% and 28%.

Investors will watch for any signs of slowing AI infrastructure demand, margin pressure and order trends from data center clients, especially after its planned acquisition of co-packaged optics module maker Nubis, announced in 2025.

Broadcom: AI Chip Orders and Margin Watch

Broadcom shares are up 61.31% over the past year but have pulled back about 23% from their all-time high of $414.61 to trade around $318.82 as of March 2.

The last two earnings reports drove sharp moves in the stock. AVGO shares fell over 11% on December 12 after management forecast lower margins on custom AI processors in Q1 2026. Earlier, on September 5, the stock jumped 15% after CEO Hock Tan confirmed a $10bn AI chip order from a new customer.

Broadcom, which earned about 61% of its revenue from its semiconductor solutions business in Q4 2025, has guided Q1 2026 revenue at $19.1bn, up about 28% year-over-year and 6% sequentially.

Investors will focus on margin trends, AI order book and commentary on fab capacity amid production constraints. Broadcom currently trades at a forward P/S ratio of 15.33, compared with Nvidia’s 13.12 and Advanced Micro Devices’ [AMD] 7.11, as of March 2. 

Here are how the three stocks’ fundamentals currently compare:  

Source: Yahoo Finance

Conclusion

Investor focus will be on Dycom’s backlog strength and ability to expand into data center infrastructure, while Ciena must prove that strong optical demand justifies its elevated valuation. Meanwhile, Broadcom investors will remain closely focused on AI chip demand, margins, and any signals around production capacity constraints.