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News  ›  The Motley Fool

The Market May Be Underestimating This AI Trend, and These Stocks Are Set to Benefit

The Motley Fool Logo The Motley Fool By Manali Pradhan, Cfa
The Market May Be Underestimating This AI Trend, and These Stocks Are Set to Benefit

As AI clusters scale beyond 100,000 compute nodes, networking infrastructure has become a critical bottleneck. The article highlights that investors have overlooked AI networking opportunities while focusing on GPUs. Broadcom and Coherent are positioned to benefit from surging demand for high-speed optical modules and networking components, with Broadcom reporting $20 billion in non-accelerator AI backlog and Coherent experiencing record bookings for optical connectivity equipment.

Insights
AVGO   positive

Strong AI networking demand with $10B+ switch backlog, $20B non-accelerator AI backlog, and AI revenue expected to double year-over-year to $8.2B. Well-positioned across both accelerator and networking portfolios for AI infrastructure buildout.