Nvidia Gets The Headlines. But This Optical Networking Stock Was The Bigger AI Surprise - The Motley Fool

While NVIDIA dominates headlines in the booming artificial intelligence (AI) market as the leading producer of data center GPUs, a lesser-known optical networking stock—Coherent (COHR)—has outperforme... Read original →

The AI compute arms race is cascading from GPUs down to optical interconnect infrastructure. While NVIDIA dominates training chips, its 3nm/EUV-driven power density spikes force data centers to adopt 800G/1.6T optics—Coherent’s core battleground. Technologically, silicon photonics and thin-film lithium niobate modulators will redefine cost structures. Geopolitically, tightening U.S. export controls on advanced optical gear raise supply chain risks for customers in Europe and Taiwan, China. With Lumentum and Innolight racing toward 1.6T, Coherent must vertically integrate laser and DSP resources. Over the next 18 months, as 3.2T standards emerge, full-stack players—from materials to packaging—will dictate ecosystem leadership. Photonics is no longer auxiliary; it’s becoming the new Moore’s Law engine for AI infrastructure.