Nvidia CEO Jensen Huang Highlighted a New AI Bottleneck. 3 AI Stocks That Could Benefit.
As these companies try to solve a new AI bottleneck, their stock prices keep climbing.
Overview
Energy and memory stocks have been pick-and-shovel winners in the artificial intelligence (AI) market as supply can't keep up with demand. But Nvidia has shown, through investments in companies working on network optimization and with photonics technology solutions, that a different AI bottleneck has been brewing.
As more people become comfortable talking with chatbots and using AI agents, expectations for quick responses rise. To improve the bots' speed, photonics technology uses light to move data, boosting the efficiency of data transferring between chips and servers.
Details
"The amount of silicon photonics technology capacity that we need is substantially higher than the world has today," Nvidia CEO Jensen Huang said at a conference in March. That puts the spotlight on three companies Nvidia has invested in: Coherent (NYSE: COHR), Lumentum Holdings (NASDAQ: LITE), and Nokia (NYSE: NOK).
Source
Originally published at www.fool.com.