The AI Boom Has a Second Act -- And It's Playing Out in Optics

The AI boom has a second act that extends beyond chips into the infrastructure layers that connect data centers, according to TradeSmith’s Lucas Downey. The discussion frames the AI infrastructure stack as five layers—land and site development, power, cooling, compute, and memory—before focusing on the final layer: networking and connectivity. Downey argues analysts are still catching up on optics as hyperscalers shift from copper wiring to optical links using fiber and glass, which can reduce heat and cooling costs while supporting faster data transfer. He estimates global AI infrastructure capex is approaching $1 trillion, and highlights supply bottlenecks in optical networking components. Amphenol, which provides connectors and interconnect systems, is cited after reporting revenue of $7.62 billion versus the Street’s estimate of $7.08 billion, alongside beat in EPS and guidance above expectations. Corning is also mentioned for specialty glass and recent hyperscaler deals, including a partnership with Nvidia to expand U.S. optical connectivity manufacturing, with a projected 10x capacity increase and more than 50% fiber capacity growth.