Broadcom and Coherent are benefiting from the growing demand in the AI networking market, with Broadcom having a $20 billion non-accelerator AI backlog. The need for high-speed, high-bandwidth, low-latency networking is increasing as AI clusters scale beyond 100,000 compute nodes. Hyperscalers are deploying large AI clusters, requiring tens of thousands of optical modules for efficient data movement between GPUs, switches, and racks. Companies like Broadcom and Coherent are positioned to benefit from this trend, with Broadcom reporting a $73 billion AI-related backlog and Coherent experiencing record bookings and revenue growth.

Read more at Nasdaq: The Market May Be Underestimating This AI Trend, and These Stocks Are Set to Benefit