Goldman just dropped a detailed breakdown of the optical networking supply chain — the kind of map that shows you who's feeding who in the AI infrastructure buildout.
This isn't just about data center switches anymore. We're talking about the entire photonics layer that makes hyperscale connectivity possible. $NVDA and $AVGO sit at the top as system integrators, but the real alpha might be further down the chain.
$TSEM, $MRVL, $LITE, $COHR, $AXTI — these are the picks-and-shovels plays most retail investors miss. They're supplying the lasers, transceivers, and optical components that turn electrical signals into light and back again. Boring? Maybe. But necessary? Absolutely.
Optical networking demand is accelerating because AI clusters are getting bigger and denser. You can't scale to 100,000+ GPUs without solving the interconnect problem. That's where this supply chain comes in.
If you're positioning for the next leg of AI infrastructure spending, don't just chase the headline names. Follow the supply chain. The companies enabling the plumbing often outperform during the middle innings of a capex cycle.
This isn't just about data center switches anymore. We're talking about the entire photonics layer that makes hyperscale connectivity possible. $NVDA and $AVGO sit at the top as system integrators, but the real alpha might be further down the chain.
$TSEM, $MRVL, $LITE, $COHR, $AXTI — these are the picks-and-shovels plays most retail investors miss. They're supplying the lasers, transceivers, and optical components that turn electrical signals into light and back again. Boring? Maybe. But necessary? Absolutely.
Optical networking demand is accelerating because AI clusters are getting bigger and denser. You can't scale to 100,000+ GPUs without solving the interconnect problem. That's where this supply chain comes in.
If you're positioning for the next leg of AI infrastructure spending, don't just chase the headline names. Follow the supply chain. The companies enabling the plumbing often outperform during the middle innings of a capex cycle.