Goldman Sachs Says Optical Networking Is AI’s Next Trillion-Dollar Opportunity. Lumentum May Be the Biggest Winner
Publish Date: 2026-07-11 07:30:00
Source Domain: 247wallst.com
- Goldman Sachs identifies networking, not just computing, as the next major investment area in AI infrastructure.
- The demand for faster data movement between thousands of processors is projected to grow significantly, with optical technologies becoming increasingly important.
- Lumentum Holdings is highlighted as a key player focusing on optical communications, with strong potential due to its concentration in this sector.
- The market for optical networking is expected to grow substantially, from $15 billion to $154 billion by 2028, driven by the need for faster and more efficient data transfers in AI systems.
- Despite risks such as delayed adoption and slower AI spending growth, the trend toward increased networking demand within AI appears strong, offering substantial opportunities for companies like Lumentum.
