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Will Verizon's Fiber Focus to Cater to AI Workloads Aid VZ Stock?

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Verizon Communications Inc. (VZ - Free Report) has completed a trial across a live metro network to test the efficacy of its fiber infrastructure for handling huge AI (artificial intelligence) workloads. The trial was accomplished using Ciena Corporation’s (CIEN - Free Report) WaveLogic 6 Extreme (WL6e) coherent optical solution and passed through nine reconfigurable optical add-drop multiplexers (ROADMs).

Leveraging Ciena’s optical solution, Verizon was able to transfer 1.6 Tb/s of data in a live fiber network over a 118 km Boston metro route on a single-carrier wavelength, validating the performance of WL6e in a flexible, dense ROADM environment. This highlighted the fiber network’s prowess in swiftly transferring huge data on a real-time basis, which is the cornerstone of Generative AI.

VZ’s Fiber Supported by CIEN’s WL6e

Verizon has been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and 5G wireless standards as well as wireline connections. The company remains focused on making necessary capital expenditures due to the continued expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of the fiber infrastructure.

Boasting the industry’s first high-bandwidth coherent transceiver, Ciena’s WL6e offers massive 1.6 Tb/s, single-carrier wavelengths for metro ROADM deployments to maximize network coverage for 800G connectivity. This enables it to cater to the exponential growth in bandwidth-intensive applications like AI and predictive analytics using Generative AI. Utilizing innovations in coherent digital signal processors, the WL6e provides the highest capacity over fiber to manage greater workloads with significant energy savings compared to previous generations.

Will VZ Stock Benefit?

By upgrading the fiber infrastructure with state-of-the-art solutions from Ciena, Verizon has effectively deployed advanced technologies throughout the network for faster agility and the ability to power the processes and movements of AI-generated activity. This has enabled the company to strengthen its position as one of the leading fiber providers for AI workloads. This, in turn, is likely to generate incremental revenues in the future and boost the stock.

VZ’s Zacks Rank

Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Picks

Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 (Buy), is a foremost supplier of enterprise-level software solutions for human resource and finance management. WDAY changes the way analytical insights and contributions to decision-making are made available to businesses by integrating finance and human resources as one system on the cloud. 

InterDigital, Inc. (IDCC - Free Report) sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%. IDCC is a pioneer in advanced mobile technologies enabling wireless communications and capabilities. The company designs and develops a whole range of advanced technology solutions for use in digital cellular as well as wireless 3G, 4G, and IEEE 802-related products and networks.


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