Nvidia could create a new wave of spending across telecom and networking companies if reports of a large-scale connectivity project prove accurate.

Needham said Nvidia is believed to be working on a "massive" long-haul telecom network project that could cost between $5 billion and $10 billion over the next 3 years. The firm suspects Nvidia wants to reduce its dependence on the major hyperscalers by building direct connectivity and hosting infrastructure for neocloud partners and enterprise customers.

Needham identified Ciena , Cisco , Nokia , Corning , Zayo and Lumen as likely beneficiaries. Among them, the firm sees the biggest upside for Ciena, estimating the company could generate an additional $500 million to $800 million in revenue over the next 2 to 3 years if it secures contracts tied to the project.

The checks also suggest the network could include dozens of fiber pairs capable of moving more than 5 petabytes of data. Corning is expected to be a key fiber supplier, while Zayo and Lumen could help build portions of the network.