Prediction: This Growth Stock Will Soar 350% by 2030 Thanks to the Next Big AI Infrastructure Bottleneck
The soaring demand for optical networking components has supercharged Ciena's growth.
Overview
Artificial intelligence (AI) data centers process enormous amounts of data quickly to perform complex calculations, ensuring that AI workloads such as model training and inference run seamlessly.
The rapid movement of data in AI data center clusters has created a massive shortage in the memory market. That's because memory chips help in feeding huge data sets quickly to AI accelerator chips, which then perform calculations on that data. However, the need to quickly transport large data sets is also creating a shortage in the optical networking market.
Details
Optical networks are known for their higher bandwidth and speed, which is why they are in great demand in AI data centers. Goldman Sachs notes that the optical networking market could be worth a whopping $154 billion in 2028, a significant jump from $15 billion this year. Ciena (NYSE:CIEN) is already benefiting from this market's phenomenal growth, evidenced by its latest quarterly report.
Source
Originally published at www.fool.com.