3 Networking Chip Stocks Riding the AI Data Center Boom
Computing power is meaningless if chips can't work together.
Overview
There's been a lot of focus in recent months on the growth of artificial intelligence (AI) and the need for more data centers to power AI workloads. Data center power demands are expected to double from 2025 to 2027, reaching 66 gigawatts, according to Goldman Sachs. And the global data center market size is expected to expand from $425 billion this year to $902.2 billion by 2033.
Computing power gets most of the attention in modern data centers, but networking -- often overlooked -- plays an equally critical role. Data centers can contain thousands of graphics processing units (GPUs) that are constantly exchanging massive amounts of data to train and run AI models. And as those models become more complex, there's an increasing need for faster, lower-latency connections.
Details
Networking chip stocks include those that make high-speed chips and switches, as well as technologies that help eliminate bottlenecks and keep AI hardware operating at peak efficiency. Three of the best that are currently riding the AI data center boom are Nvidia (NASDAQ: NVDA), Astera Labs (NASDAQ: ALAB), and Credo Technology Group (NASDAQ: CRDO). Let's look closer at each one.
Source
Originally published at www.fool.com.