Aug. 5 at 11:20 PM
AI Infrastructure Shift: Copper Is Running Out Of Road, Optics Take Over
Copper works at short distances. Beyond a few meters, AI networks need light.
Today’s AI racks still rely on thousands of copper connections - but by 2028, the transition toward optical links could become massive.
Here are the key names positioned across the optical stack:
$COHR - The foundation of the light engine
Coherent’s 6-inch indium phosphide platform is already ramping, with capacity expected to expand significantly through 2027.
$NVDA has committed
$2B alongside a multi-year supply agreement extending into the end of the decade.
Balance sheet improvement has also been notable: net leverage dropped from 2.1x to 0.5x in one year, helped by asset sales rather than heavy equity dilution.
And if optical transceiver restrictions expand,
$COHR has relatively limited exposure to Chinese module suppliers.
The AI race is moving from compute to connectivity - and optical infrastructure may become the next major bottlenec
