Not Micron, Not Sandisk. This AI Stock Will Be the Biggest Beneficiary of the Next Infrastructure Bottleneck
Optical components are emerging as the next big bottleneck in AI data centers, which explains the phenomenal growth in Lumentum's business.
Overview
Shares of Micron Technology and Sandisk have clocked phenomenal returns over the past year, primarily due to the mission-critical role of the memory chips produced by them for running artificial intelligence (AI) workloads in data centers.
Faster memory chips and larger storage help solve a key bottleneck in AI data centers by enabling the rapid transport of large volumes of data to data center accelerators. As a result, accelerator chips, such as graphics cards and custom processors, don't have to sit idle and waste energy. However, a closer look at the AI infrastructure ecosystem makes it clear that memory isn't the only bottleneck impeding accelerator performance.
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Originally published at www.fool.com.