The bank forecasts a 9x surge in optical networking components demand driven by AI infrastructure needs.
Goldman Sachs projects the optical networking components market will expand ninefold to $154 billion within two years, fueled by AI-driven data center demand. Memory chip shortages and the need for rapid data transmission are accelerating adoption of optical networking solutions.
The firm highlights Lumentum (LITE), Ciena (CIEN), and Coherent (COHR) as key beneficiaries, citing their strong earnings growth in 2026. These companies specialize in components critical for AI infrastructure, addressing bottlenecks in data transport.
Optical networking is emerging as a critical enabler for AI model training and inference applications, with demand expected to outpace supply through the decade.