Forget Nvidia, These Are the 3 Best Stocks for Solving AI’s Bandwidth Bottleneck

2 hours ago 1

Rich Duprey

Mon, April 6, 2026 astatine 7:26 AM CDT 6 min read

Lumentum Holdings (LITE) reported Q2 FY2026 gross of $665.5M, up 65% year-over-year with non-GAAP operating borderline expanding to 25.2%, portion securing a $2B Nvidia concern positive multibillion-dollar acquisition commitments and a $400M optical circuit power backlog. Coherent (COHR) posted gross of $1.69B with information halfway and communications conception rising 33.6% to $1.2B, book-to-bill exceeding 4-to-1 successful information halfway optics, and received a $2B Nvidia concern with multi-year proviso agreements. Fabrinet (FN) delivered grounds gross of $1.133B, up 36% year-over-year, with optical communications gross hitting $833M and telecom/data halfway interconnect surging 59%.
Nvidia’s $4B concern divided arsenic betwixt Lumentum and Coherent signals that optical interconnect exertion solving bandwidth bottlenecks astatine 1.6-terabit speeds has go captious infrastructure, with the AI information halfway optics marketplace expected to grow from $3.75B successful 2025 to $18B by 2033.
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What if the hottest AI commercialized isn't the GPUs grabbing each the headlines, but the high-speed pipes that really fto those chips speech to each other? Although Nvidia (NASDAQ:NVDA) inactive garners attraction due to the fact that of the booming request for its Blackwell and upcoming Vera Rubin chips, AI grooming clusters person scaled truthful accelerated that copper cables deed their limits astatine rack-to-rack distances and 800-gigabit speeds.

Optics lick the bandwidth bottleneck with little power, longer reach, and the quality to grip 1.6-terabit flows. Industry forecasts amusement 800G-plus transceiver shipments claiming implicit 60% of the marketplace successful 2026, portion the broader optical interconnect abstraction successful AI information centers could grow from astir $3.75 cardinal successful 2025 toward $18 cardinal by 2033.

Nvidia itself conscionable enactment $4 cardinal down this displacement -- $2 cardinal each into 2 cardinal suppliers -- signaling the plumbing present matters arsenic overmuch arsenic the engines. Plenty of stocks interaction the optical boom: constituent makers, module assemblers, adjacent trial equipment. Yet 3 names basal retired for investors today: Lumentum Holdings (NASDAQ:LITE), Coherent (NYSE:COHR), and Fabrinet (NYSE:FN). They present the lasers, transceivers, and manufacturing musculus that are driving AI's adjacent limb higher.

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