The Next Big AI Market Bottleneck Is Here: 8 Stocks to Play the Boom in Optics
The rally in optical stocks could just be beginning.
Overview
The pace of artificial intelligence (AI) innovation continues to accelerate, and as it does, the need for faster connectivity is intensifying. This is leading to a shift in the data center away from traditional copper wiring to optical connections that are both faster and more energy-efficient. And rising demand for optical hardware is also creating what could be the next big bottleneck in the AI infrastructure build-out.
Let's look at eight AI stocks you could buy to play the optics trend, starting with chip companies and moving on to companies that provide the physical, campus, and wide-area networking (WAN) layers of optical infrastructure.
Details
Marvell Technology (NASDAQ: MRVL) is the market leader in optical DSPs (digital signal processors), which serve as the brains inside high-speed optical transceivers. DSPs are the main chips used to take electrical signals from AI chip clusters and convert them into light, thus allowing the data to be transmitted through optical systems. Nvidia views Marvell's tech as so important to the data center tech stack that it made a $2 billion investment in the company and partnered with it to integrate Marvell's optical networking into its NVLink ecosystem.
Source
Originally published at www.fool.com.