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The AI Bottleneck Most Investors Are Missing but Shouldn't

The first wave of AI investing focused on companies building powerful processors. But as AI systems become larger, a different challenge is emerging: moving massive amounts of data between those processors.

The AI Bottleneck Most Investors Are Missing but Shouldn't

Published June 28, 2026 · Category: Finance

Overview

Most investors think the artificial intelligence revolution is about building smarter chips. And for good reason. Companies that provide the computing power behind AI, most notably Nvidia, have been some of the market's biggest winners in recent years.

But what if the next major AI opportunity isn't about processing information? What if it's about moving information?

Details

As AI clusters grow larger and more powerful, moving data between processors is becoming almost as important as processing the data itself. And that's why a growing number of investors are paying attention to a little-known corner of the technology industry: optical networking.

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Source

Originally published at www.fool.com.

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