Optical Networking Is AI's Most Overlooked Bottleneck. Here's Why This Nvidia-Backed Company Is the Stock to Own.
Coherent is an oft-overlooked play on the booming AI market.
Optical Networking Is AI's Most Overlooked Bottleneck. Here's Why This Nvidia-Backed Company Is the Stock to Own.
Overview
Many discussions about the artificial intelligence (AI) market revolve around Nvidia (NASDAQ: NVDA), the world's leading producer of data center GPUs. Those chips, which most of the world's top AI companies use, are still the best picks and shovels for the AI gold rush.
However, the AI market's growth is also generating strong tailwinds for optical networking companies, which manufacture optical transceivers and components that convert electronic data into light signals and transmit them through fiber-optic cables. Many data centers are now upgrading their older copper wires, which are too slow and generate too much heat to handle the latest cloud and AI applications, to faster fiber-optic components.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
