‘Market’s Latest Shiny Objects’: Optical Stocks Get AI Momentum

Over the past few years, the build-out of artificial intelligence infrastructure has transformed stocks in a variety of industries, from chips to utilities, into unexpected high-fliers. Optical component makers are investors’ latest darlings.

Companies like Applied Optoelectronics Inc., Lumentum Holdings Inc., Coherent Corp., Fabrinet and Corning Inc. are soaring this year, amid growing appreciation for the crucial role optical products play in data centers, especially as rising AI usage requires increasing amounts of bandwidth.