Jun. 24 at 1:06 AM
$LUMN Nvidia is believed to be working on a “massive” project that could create a new, very high capacity long-haul telecom project, Needham Securities said. And with the cost likely between
$5B and
$10B over three years, Ciena, Cisco and several others may benefit, the investment firm said.
“While we are not certain of their rationale, we suspect NVDA seeks to reduce its dependence on the big 4 hyperscalers who dominate global hosting and LH interconnect capacity by building direct connectivity and hosting for its strategic neocloud partners and future enterprise customers,” Needham analyst Ryan Koontz wrote in a note to clients. “Among beneficiaries of this unannounced program, we have identified CIEN, CSCO, NOK, GLW, Zayo, and Lumen as likely contract awardees.”
Delving deeper, Koontz said he believes Ciena could see an incremental
$500M to
$800M in sales from the project over the next two or three years, while Cisco and Nokia see less. And with Ciena shares having pulled back,
