Photonics: The Picks and Shovels Play Powering AI Infrastructure's Next Revenue Wave

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Let's get into it. The AI infrastructure bowl out isn't just about chips, it's about moving data at the speed of light. And that's where photonics comes in. We're talking fiber optics, silicon photonics and optical connectivity. The picks and shovels enabling AI clusters and hyperscale data centers to function without melting down from heat or choking on bandwidth. According to a recent Yahoo Finance article titled Declogging the Future, why photonics is AI's ultimate growth engine, photonics is the infrastructure investment similar to selling picks and shovels during a gold rush. Traditional copper wiring hits hard limits on speed and generates excessive heat. Photonics solves that by transferring data over fiber optic cables at light speed with drastically lower latency and energy consumption. The market is massive and ramping fast. According to Mordor Intelligence, the global photonics market is projected to hit roughly $1.48 trillion by 2030, growing at a compound annual rate of about 6.3%.
But the real action is in the specific companies building this infrastructure right now. And several names stand out with concrete partnerships, revenue ramps and growth catalysts that make them compelling place today.
Let's start with Corning, ticker GLW.
Corning is expanding its Gen AI optical portfolio with multi-core fiber and high density connectivity solutions. The big catalyst here is a long-term partnership with Nvidia announced recently. Corning is expanding US-based optical connectivity, manufacturing capacity by 10 times, and domestic fiber production by more than 50 percent. That's not incremental. That's a wholesale build out. Corning's management has laid out a clear target. They expect their Photonics Market Access Platform to generate a potential $10 billion revenue stream by 2030 That's a concrete time-bound projection tied directly to the AI infrastructure wave. Corning is a foundational play here, literally producing the glass fiber that carries the data.
Next, Coherent Corp, ticker C, OHR. Coherent entered a strategic partnership with Nvidia that involves Nvidia Avia investing $2 billion in Coherent for a multi-year deal extending through 2030 This partnership focuses on next generation optical technology and silicon photonics specifically designed for AI data centers. Coherent has forecasted revenue growth of about 34.4% and earnings growth of roughly 47.6% for the next year ending June, 2027 Those are aggressive numbers and they're backed by a $2 billion commitment from one of the most important players in AI hardware. Coherent is positioned as a critical supplier of the optical engines that enable high-speed interconnects within and between data centers. Marvell Technology, Ticker MRVL, reported AI-related revenue jumped nearly 106% in its most recent quarter. Marvell has strong collaborations with hyperscale technology companies, including Amazon and Microsoft, for custom AI ASICs and optics advancements. Marvell's management has set a pathway targeting over $100 billion in AI chip revenue by 2027
A significant portion of that involves optical connectivity in silicon photonics components that enable faster data movement between processors and memory. Marvell is a hybrid play, chips and photonics, but the photonics angle is critical to their AI revenue ramp. Lumentum Holdings, ticker LITE, is focused on high-speed connectivity and laser solutions for telecom and data center applications. Lumentum is developing 1.6 terabit cloud AI platforms with efficient thermal envelopes running at approximately 15 watts. That thermal efficiency is key, data centers are power constrained, and cooling costs are a major operating expense. Lumentum's ability to deliver massive bandwidth at low power makes their products highly attractive for hyperscale deployments.
Industry forecasts point to dramatic earnings per share estimate increases over the coming years as these platforms scale into production. Macom Technology Solutions, Ticker MTSI is recognized for enabling optical communications in AI data centers, industrial systems, defense, and telecom equipment.
Macom carries a Zaks rank of number one, which is their highest conviction by rating, given its strong positioning in AI and optical data infrastructure. Macom's products are used in the amplifiers, modulators, and switches that make high-speed optical networks function. They're a critical enabler at the component level. There's also Global Foundries, Ticker GFS, which is a play on silicon photonics manufacturing. According to a YouTube video analysis by Zach's Investment Research titled Best 5 Silicon Photonics Stocks to Buy Now in 2026, Global Foundries revenue from silicon photonics is forecasted to double from $700 million in 2026 to $1.4 billion in 2027, eventually surpassing $2 billion in 2028 That's a clear revenue ramp tied to fabrication capacity for photonics chips. The technology itself is scaling rapidly. The industry is moving from 400 gigabits per second platforms to 800 gigabits per second, and now 1.6 terabit optical platforms. These speeds are necessary to support the massive data movement required by large language models and AI training clusters. Silicon Photonics integrates optical components directly onto silicon chips, enabling compact, high performance, and cost-effective solutions.