Goldman_Sachs forecasts AI optical networking boom
Analysis based on 8 articles · First reported May 19, 2026 · Last updated May 19, 2026
The report by Goldman Sachs projects a significant increase in the total addressable market for AI networking infrastructure, particularly in optical networking and Co-Packaged Optics, which is expected to reach USD 154 billion by 2028. This forecast suggests substantial growth opportunities for companies involved in AI infrastructure, optical modules, and related technologies, potentially boosting their stock prices and attracting investment. The mention of Nvidia's contributions further highlights key players in this expanding market.
Goldman Sachs released a report on May 19, 2026, highlighting optical networking as the next major trend in Artificial intelligence (AI) infrastructure. The report projects the total addressable market for AI networking, including scale-up and scale-out configurations, to grow nearly ninefold from USD 15 billion in 2026 to USD 154 billion by 2028. This growth is driven by increasing AI computing demand, requiring faster data exchange, lower latency, and larger Graphics processing unit clusters. Co-Packaged Optics (CPO) is expected to be a key technology, potentially contributing USD 91 billion to this market. The report also notes that Nvidia has introduced scale-across networking solutions, indicating active development in this area.
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