Shares of Ciena Corp. (NYSE: CIEN) climbed 3% Friday after Rosenblatt Securities upgraded the telecom equipment maker, citing growing demand from artificial-intelligence data centers.

Analyst Mike Genovese raised his rating on Ciena to Buy, pointing to what he called a “scale across” opportunity—connecting multiple AI data centers into high-performance clusters. He noted that Ciena has already secured a deal with a major cloud provider to link two 100,000-GPU facilities located about 100 kilometers apart, using its WaveLogic 6 Nano 800G ZR pluggable modules.

The hyperscaler is deploying roughly 20 petabytes of capacity, Genovese said, fueling demand for Ciena’s multi-rail amplifier technology. He estimated the contract could generate about $200 million in revenue, including sales of pluggables and supporting equipment such as amplifiers.

“We believe the scale across opportunity is just getting started,” Genovese wrote in a note to clients. “Ciena is well positioned to capture further business interconnecting data centers into clusters, using either pluggables or embedded DWDM solutions depending on performance and distance requirements.”

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