If AI Keeps Scaling, Photonics Could Be the Next Big Chips Trade

As AI models grow larger and more complex, the biggest bottleneck is no longer just raw compute power — it’s how fast data can move between chips and servers. Traditional copper connections are hitting physical limits. Photonics (using light instead of electricity) is emerging as a promising solution for ultra-fast, energy-efficient data movement inside AI data centers. Here are 6 photonics-related stocks worth watching for potential further momentum: 1. Coherent (COHR) – $70B valuation Broad photonics leader in industrial lasers, optical networking, semiconductors, and advanced materials. More diversified than pure AI plays. 2. Lumentum (LITE) – $63B valuation Specializes in optical components, lasers, and transceivers that help AI data centers move information at high speed. Often viewed...