Goldman Sachs Identifies Optical Networking as AI's Next Trillion-Dollar Market, Highlights Lumentum as Key Beneficiary

Goldman Sachs has identified optical networking infrastructure as the next major trillion-dollar opportunity in AI, citing its critical role in enabling high-speed data transmission for AI systems. The investment bank suggests Lumentum Holdings, a leading optical component manufacturer, is positioned to capture significant value from this infrastructure buildout.

Why it matters: As AI workloads continue to scale globally, the physical infrastructure supporting data centers and AI computing becomes increasingly critical to market winners—making optical networking investment thesis essential for tech investors and industry strategists.