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

The rapid expansion of global artificial intelligence (AI) infrastructure is increasingly constrained not by raw compute but by bandwidth, latency, and reliability of the networking interconnects. Hyperscalers are deploying AI clusters with over 100,000 compute nodes (GPUs, accelerators, CPUs) to support large-scale training and inferencing workloads. These clusters require tens of thousands of optical modules to move data efficiently between GPUs, switches, and racks.

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With copper-based networking unable to keep pace, hyperscalers are adopting 800-gigabit (800G) optical modules at scale, while 1.6-terabit (1.6T) silicon photonics-based interconnects are already in the advanced qualification and early customer adoption stages.

Despite the scale of this AI networking opportunity, investors have remained disproportionately focused on the GPUs. Here are two companies that can benefit from this underestimated AI trend in 2026.

Broadcom

Broadcom (NASDAQ: AVGO) is increasingly seeing strong demand for its AI networking components, as hyperscalers build data center infrastructure ahead of deploying custom accelerators.

Broadcom exited its fiscal 2025 with AI switch backlog exceeding $10 billion, driven by record bookings for its 102-terabit-per-second Tomahawk 6 switch. The company has also secured record orders for digital signal processors and optical networking components, such as lasers and PCI Express switches. The company reported $73 billion total AI-related backlog to be delivered in the next 18 months, almost half of the $162 billion consolidated backlog. Since nearly $20 billion of the $73 billion backlog is nonaccelerator content, it is evident that networking and optical components are already becoming a material revenue source.

At the same time, Broadcom's custom accelerator business is still its primary growth engine. The company's AI semiconductor revenue was up 74% year over year in the quarter to $6.5 billion. Management expects AI revenue to double year over year to $8.2 billion in the current quarter.

Considering its strong accelerator and networking portfolio, Broadcom is well positioned to capture a significant share of global AI infrastructure buildout.

Coherent

Coherent (NYSE: COHR) designs and sells lasers, optical transceivers, and photonic components that enable high-speed, high-bandwidth, and low-latency data transmission in AI data centers, cloud networks, and telecommunication infrastructure.

Coherent is already seeing clear AI-driven traction and is well positioned to benefit from the AI networking upgrade cycle. In the first quarter of fiscal 2026 (ending Sept. 30, 2025), revenue was up 17% year over year to $1.58 billion. Data center revenue was up 23% year over year, driven by strong demand from hyperscalers for its high-speed optical connectivity equipment. Coherent experienced record bookings in the first quarter, with some orders extending more than 12 months into the future. This highlights the company's robust revenue visibility, which can help protect it from near-term macro volatility.

The company has also demonstrated the capabilities of the 1.6T optical transceivers based on three different technologies: silicon photonics, electro-absorption modulated laser (EML), and vertical-cavity surface-emitting laser (VCSEL). While early ramp-ups are underway, the company expects broader adoption as customers scale their AI networks in calendar year 2026.

With accelerating 800G deployments, early 1.6T ramps, and expanding bookings backlog, Coherent could see rapid growth in the coming years.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Coherent. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.