In this article, we look at the 10 Best Fiber Optics Stocks to Buy for the AI Data Center Boom.
AI data centers are putting unusual pressure on the optical networking supply chain, not because fiber is new, but because large AI clusters need far more bandwidth between accelerators, switches, racks, and data center campuses. Dell’Oro Group’s May 2026 outlook provides a current marker for the trend: the firm expects the optical transport equipment market to grow 16% in 2026 and exceed $18 billion in manufacturer revenue for the first time since 2000, following an estimated 20% year-over-year market growth in the first quarter of 2026. Dell’Oro also estimated that revenue tied to direct purchases for data center interconnect grew 40% year-over-year in Q1 2026.
The optical component side is showing a similar pattern. LightCounting’s April 2026 forecast said the Ethernet transceiver market grew 93% in 2024 and an estimated 82% in 2025, with another 65% growth forecast for 2026. The firm also expects AI cluster connectivity to support demand for faster, longer-reach optical modules that can move large amounts of data between data centers and across dense AI campuses. The setup remains cyclical, with risks from accelerator supply, laser-chip capacity, customer inventory, and cloud capital spending, but the AI bandwidth problem is making optical connectivity a larger part of data center expansion.
Methodology
For this article, we screened companies with meaningful exposure to fiber optics, optical networking, optical components, high-speed interconnects, and related AI data center infrastructure. We then ranked the stocks by the number of hedge fund holders holding stakes in them as of Q1 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Prysmian S.p.A. (OTC:PRYMY)
Number of Hedge Fund Holders: N/A
Prysmian S.p.A. (OTC:PRYMY) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On June 2, 2026, Jefferies raised its price target on Prysmian to €176, citing rising demand for optical fiber infrastructure tied to AI data centers. The firm pointed to Prysmian’s Digital Solutions unit as a key growth driver and forecast the segment’s revenue to grow at an annual rate of about 20% from 2026 to 2030, roughly doubling over that period.
The thesis fits the fiber optics theme more cleanly than broad connector or chip names because Prysmian is directly exposed to the physical cable layer. Its own May 13, 2026, discussion of AI fiber network design said AI data centers require dense, reliable optical infrastructure, including bend-insensitive single-mode fiber, ultra-high-count ribbon cables, and emerging hollow-core fiber that could extend the reach and speed of links between data centers.
Prysmian S.p.A. (OTC:PRYMY) is a global cable and systems company serving energy, telecom, broadband, data center, and industrial markets. Its digital solutions portfolio includes optical fiber, fiber-optic cable, connectivity products, and high-density network infrastructure used in data centers and communications networks.
9. MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI)
Number of Hedge Fund Holders: 45
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On June 8, 2026, MACOM introduced its hot via chip scale technology, a packaging process built on AlGaAs diode technology that eliminates traditional wire bonds. The product detail is technical, but the investor angle is straightforward: as AI networks move toward faster optical and high-frequency links, component makers need packaging that can preserve signal quality while reducing assembly complexity.
MACOM said the process routes RF signal and ground paths vertically through the die, simplifying surface-mount assembly, reducing parasitics, improving manufacturing consistency, and supporting reliable performance into millimeter-wave frequencies. Its first product using the process is the MASW-011261, a broadband SP2T switch operating from 60 to 110 GHz, with 0.9 dB typical insertion loss, 30 dB isolation, and sub-20 ns switching. The release reinforces MACOM’s position in high-speed semiconductor components used across optical networking and data-center infrastructure.
MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) designs and manufactures semiconductor products for telecommunications, industrial, defense, and data center applications. Its portfolio includes RF, microwave, analog, mixed-signal, optical, photonic, and networking semiconductor products.
