Gary Smith, chief executive officer and president of Siena, speaks in an interview with Bloomberg TV in New York on June 14, 2013.
Scott Eales | Bloomberg | Getty Images
network hardware manufacturers siena joins the S&P 500, returning to the benchmark 17 years ago. Stock prices rose in extended trading.
S&P Dow Jones Indices announced in a statement Wednesday that Siena will replace human resources software company DayForce. Private equity firm Thoma Bravo acquired Dayforce for $12.3 billion.
Ciena sells a variety of products for high-speed fiber optic networks. Nearly 18% of our fiscal year 2025 revenue will come from anonymous cloud providers, and approximately 11% will come from cloud providers. AT&TAccording to the company’s annual report. Siena’s market capitalization has nearly tripled in the past year.
The stock prices of companies added to the S&P 500 often rise in advance of their inclusion in the index, as fund managers buy stocks in line with a benchmark. technology companies App Labin, data dog, door dash and robin hood It will enter the S&P500 in 2025.
For Siena, this entry marks a comeback. The company joined the index in 2001, fueled by the dot-com and telecom boom, but was removed from the index in 2009. visa.
A surge in demand for data center infrastructure capable of running generative artificial intelligence models has returned investor excitement. Siena CEO Gary Smith told analysts on a conference call in December that the opportunity is “a significant contributor to our expected growth in 2026.”
At the time, the company was targeting sales growth of about 24% during fiscal 2026, which would be the fastest rate of expansion since 2011.
On Tuesday, Siena stock closed at its highest level since 2001. Major network equipment Cisco It also hit a new high on Tuesday.
As companies look to provide additional AI capabilities, components such as memory are becoming harder to obtain and more expensive. Siena’s finance chief Mark Graf said on a December conference call that optical components are also being constrained.
“We work very closely with our key suppliers and we know who they are so we can ensure that we have supply,” Graf said.
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