Data Centers Need Faster Connections. These 6 Optical and Networking Stocks Could Benefit.

When it comes to artificial intelligence and the computing power to run it, there's one undisputed fact: Speed is the name of the game.

AI systems simply can't work without an incredible amount of data flying through processors, memory chips, and storage systems. Today, running and training complex models requires thousands of AI accelerators to work together, but if data can't move quickly among the storage devices and processors in those clusters, those AI systems become sluggish, and the chips can't work at their full potential.

So while chip companies may tout the advances they're making to craft more powerful silicon, those improvements don't matter as much without state-of-the-art connections to direct data traffic, eliminate bottlenecks, and increase bandwidth.

Here are six great companies serving this need that investors can buy today.

Image source: Getty Images.

Credo Technology

Credo Technology (NASDAQ: CRDO) makes digital signal processors (DSPs) and active electrical cables (AECs) that use signal processors to move data between chips and switches.

The company's portfolio of optical DSPs supports speeds from 50 gigabits per second to 1.6 terabits per second -- speeds that are particularly important as hyperscalers build larger and more powerful clusters of graphics processing units (GPUs) and other AI accelerators, because chips sitting idle waiting for data represent expensive wasted capacity.

In the first quarter of its fiscal 2027 (which ended Aug. 1), Credo's revenue was $479 million, up a whopping 114% from a year earlier.

Astera Labs

Astera Labs (NASDAQ: ALAB) provides products that help prevent data bottlenecks within AI racks. Its products focus on connectivity within AI infrastructure and allow customers to have infrastructure that's tailored to meet their specific requirements. The growing popularity of its Scorpio fabric switches helped Astera more than double its revenue in 2026's second quarter.

"We expect momentum to accelerate in Q3 as Scorpio fabric switches become our largest product family, one quarter ahead of our prior expectations," CEO Jitendra Mohan said in the Q2 earnings release. "This milestone will mark our evolution into a complete AI fabric infrastructure provider."

Arista Networks

Arista Networks (NYSE: ANET) makes high-speed Ethernet switches and software in data centers -- essentially tying clusters of AI accelerators together. While Astera Labs' and Credo Technology's products help move information over relatively short distances within servers or racks, Arista provides the larger networking infrastructure.

Its hardware runs proprietary software, which enables its Ethernet switches to operate seamlessly. In June, it introduced its 7060XE7 platform, which supports connections running at 1.6 terabits per second.

Coherent

Coherent (NYSE: COHR) specializes in lasers and optical connectivity equipment used in data centers. Instead of transmitting information using pulses of electricity, Coherent's hardware converts data into pulses of light and sends it through fiber-optic cables. Copper connections are fine for short connections, but the electrical signals tend to degrade over distance. Fiber also has much higher bandwidth, and light travels faster through it than electrons do through copper. That's why fiber optics is important, and Coherent is filling that role.

"As AI datacenter architectures increasingly transition from copper to optical connectivity, we believe Coherent's broad photonic technology portfolio and manufacturing scale uniquely position us to deliver accelerating growth and capitalize on this multi-year opportunity," CEO Jim Anderson said in the company's fiscal 2026 fourth-quarter earnings release.

Lumentum

Lumentum (NASDAQ: LITE) also makes high-speed optical links for GPU clusters. Its products convert electrical signals into light, enabling data to traverse fiber-optic cables.

"Lumentum is positioned at the heart of a secular industry shift," CEO Michael Hurlston said in the company's fiscal fourth-quarter earnings release. "As AI compute workloads increase in both speed and bandwidth, data center architects are turning to optical links as a primary means of connectivity."

The company's net revenue for its fiscal 2026 (which ended June 27) rose 83% to $3.01 billion.

Marvell Technology

Marvell Technology (NASDAQ: MRVL) designs semiconductors, including integrated analog circuits, storage controllers, and specialized Ethernet processors. Its chips convert and process electrical and optical signals within transceivers, enabling data to travel at high speeds.

The company's products are also ideal for longer data center connections, making them well suited to serve AI clusters across data center campuses and between multiple facilities.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks, Coherent, Lumentum, and Marvell Technology. The Motley Fool recommends Astera Labs. The Motley Fool has a disclosure policy.