New Delhi, June 4 -- Shares of Ciena Corp plunged nearly 15% on Thursday, despite the networking equipment provider reporting stronger-than-expected quarterly earnings and raising its revenue outlook. The sharp decline suggested investors had been anticipating an even bigger boost from the ongoing artificial intelligence spending boom.

At 1:18 p.m. EDT, Ciena shares were trading at $527.94, down 14.97%, or $93.91, from Wednesday's closing price of $620.37. The stock had recently been trading near its 52-week high of $637.51 before the earnings announcement.

The selloff highlighted the elevated expectations surrounding AI-linked companies, where solid financial performance may no longer be sufficient to satisfy investors seeking outsized...