Goldman Sachs Says That This Is the Next Big AI Infrastructure Megatrend With a 9X Growth Potential. 3 Stocks You Can Buy to Capitalize on This $154 Billion Opportunity
Optical networking is becoming the next bottleneck in the AI infrastructure space, and that's great news for these three companies.
Goldman Sachs Says That This Is the Next Big AI Infrastructure Megatrend With a 9X Growth Potential. 3 Stocks You Can Buy to Capitalize on This $154 Billion Opportunity
Overview
Artificial intelligence (AI) has created a terrific demand for several hardware components used in data centers to help train AI models and run inference applications. The demand for some of these components, such as memory chips, has exceeded supply, thereby creating a significant shortage that's expected to last for years.
In fact, memory chips are expected to remain in short supply until the end of the decade. That's because memory solves an important bottleneck in the AI infrastructure ecosystem, enabling the rapid transport of massive amounts of data that allows accelerator chips to unlock their full potential.
Details
However, the need to quickly transmit large datasets is also driving significant demand for optical networking components. Goldman Sachs sees optical networking as the next megatrend in the AI infrastructure space. The investment bank estimates that the total addressable market (TAM) of optical networking components could jump by a whopping 9x to $154 billion in just two years.
Source
Originally published at www.fool.com.
