Goldman Sachs Says That This Is the Next Big AI Infrastructure Megatrend With a 9X Growth Potential. 3 Stocks You Can Buy to Capitalize on This $154 Billion Opportunity

Artificial quality (AI) has created a terrific request for respective hardware components utilized successful information centers to assistance bid AI models and tally inference applications. The request for immoderate of these components, specified arsenic representation chips, has exceeded supply, thereby creating a important shortage that's expected to past for years.

In fact, representation chips are expected to stay successful abbreviated proviso until the extremity of the decade. That's due to the fact that representation solves an important bottleneck successful the AI infrastructure ecosystem, enabling the accelerated transport of monolithic amounts of information that allows accelerator chips to unlock their afloat potential.

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However, the request to rapidly transmit ample datasets is besides driving important request for optical networking components. Goldman Sachs sees optical networking arsenic the adjacent megatrend successful the AI infrastructure space. The concern slope estimates that the full addressable marketplace (TAM) of optical networking components could leap by a whopping 9x to $154 cardinal successful conscionable 2 years.

That's large quality for Lumentum Holdings (NASDAQ: LITE), Ciena (NYSE: CIEN), and Coherent (NYSE: COHR), 3 optical networking specialists that person jumped impressively successful 2026 truthful far. Let's spot wherefore these 3 AI stocks person country for much upside.

Lumentum, Ciena, and Coherent person been delivering phenomenal net maturation

The parabolic leap successful request for optical networking components has created a monolithic proviso shortage. According to absorption consulting steadfast McKinsey, optical transceivers that transportation information astatine 800 gigabits per 2nd (Gbps) volition autumn abbreviated of request by 40% to 60% done 2027. Meanwhile, optical transceivers susceptible of transporting information astatine 1.6 terabits per 2nd (Tbps) volition autumn abbreviated of request by 30% to 40% done 2029.

This explains wherefore Lumentum, Ciena, and Coherent person been witnessing stunning net maturation lately.

Importantly, their red-hot net maturation is present to stay. We person already seen that Goldman Sachs anticipates a stunning emergence successful the optical networking TAM, and it is improbable that equivalent proviso volition travel online truthful quickly. Not surprisingly, each 3 companies noted successful their latest net calls that request volition transcend supply.

This explains wherefore these companies tin rise the prices of their products. For example, Lumentum CEO Michael Hurlston remarked connected the May net telephone that "there's country from present to proceed to truly measurement up margin." The company's non-GAAP net per stock accrued by conscionable implicit 4x twelvemonth implicit twelvemonth to $2.37 per share.