In this article, we will list the 5 Best Fiber Optics Stocks to Buy for the AI Data Center Boom. Please visit 10 Best Fiber Optics Stocks to Buy for the AI Data Center Boom if you’d like to see an extended list.
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.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 79
Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On May 27, 2026, the company reported record first-quarter fiscal 2027 revenue of $2.42 billion, up 28% year over year, and guided second-quarter revenue to $2.7 billion at the midpoint. The stronger signal for this list was management’s AI connectivity commentary.
CEO Matt Murphy said Marvell was seeing “exceptional” AI-related bookings and raised its fiscal 2027 and fiscal 2028 revenue outlook, citing demand across 800G and 1.6T scale-out optics, high-capacity Ethernet switches, optical links placed closer to switching chips to improve bandwidth and power efficiency, data center interconnect modules, and custom AI accelerator-related silicon. That makes the quarter more than a broad semiconductor growth story. It shows Marvell’s fiber-optic and high-speed networking products sitting near the center of the AI data center bandwidth buildout, where latency, power use, and network scale increasingly shape spending.
Marvell Technology, Inc. (NASDAQ:MRVL) develops semiconductor solutions for data infrastructure markets. Its portfolio includes data center switches, optical modules, coherent and PAM DSPs, Ethernet controllers, PCIe retimers, custom ASICs, storage controllers, and other chips used across cloud, AI, carrier, and enterprise networks.
4. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 91
Corning Incorporated (NYSE:GLW) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On June 8, 2026, Corning announced a multiyear, multibillion-dollar agreement with Amazon to supply optical fiber, cable, and connectivity solutions for Amazon’s expanding U.S. data center infrastructure. The deal gives Corning a direct role in the physical layer of cloud and AI capacity, where faster fiber links are needed to move traffic across large data center footprints.
The agreement is also tied to a manufacturing expansion in North Carolina, with 1,000 new advanced manufacturing jobs at Corning facilities, hundreds of construction jobs, and a new workforce program with Catawba Valley Community College focused on fiber-optic manufacturing and technical roles.
The release said the agreement builds on Amazon’s planned $10 billion North Carolina cloud infrastructure investment, making the story both a demand signal from a hyperscale customer and a domestic fiber supply-chain expansion.
Corning Incorporated (NYSE:GLW) is a materials science company with businesses across optical communications, display, mobile consumer electronics, automotive, solar, semiconductors, and life sciences. Its optical communications products include fiber, cable, and connectivity solutions used in broadband, cloud, and data center networks.
3. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 97
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On June 8, 2026, Bank of America raised its price target on Cisco to $150 from $135 and reiterated a Buy rating, extending a bullish view that had sharpened after the firm’s late-May optics note. BofA said Cisco and Ciena were benefiting from the migration from 400G to 800G optical networking, essentially the move to faster fiber-based links used to push far more data between data centers and cloud networks.
The firm pointed to more than $1 billion in Cisco Acacia optical orders in fiscal Q3, with AI-related optics demand nearly quadrupling to about $950 million. It also expects the 800G optical market to expand nearly tenfold in 2026 as hyperscalers upgrade data center and networking infrastructure. Cisco is still a broad networking company, but Acacia gives it a direct optical layer tied to AI bandwidth demand rather than a loose AI label.
Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells networking, security, collaboration, observability, and cloud infrastructure products. Its optical networking exposure comes partly through Acacia, which supplies coherent optical interconnect technologies used by webscale, data center, service provider, and cloud networks.
2. Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 114
Coherent Corp. (NYSE:COHR) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On June 16, 2026, Coherent signed a letter of intent to receive up to $50 million in CHIPS and Science Act funding from the U.S. Department of Commerce to expand its 6-inch indium phosphide semiconductor manufacturing facility in Sherman, Texas. The expansion is directly relevant to AI data centers because indium phosphide photonic devices are used in high-performance optical networking components that move data between processors, memory, switches, and systems.
Coherent said the project would double manufacturing production space and quadruple wafer production capacity, increasing domestic output of AI-enabling optical technologies. The company also said the site is home to the world’s first and largest volume-production 6-inch indium phosphide platform, giving it scale in a bottleneck area of AI interconnect supply. The project is expected to create more than 1,000 jobs, including over 550 direct manufacturing, engineering, and technical roles.
Coherent Corp. (NYSE:COHR) is a photonics and optical technology company serving data center, communications, industrial, and other markets. Its portfolio includes optical transceivers, coherent modules, lasers, indium phosphide photonic devices, engineered materials, and related components used in high-speed networks and AI infrastructure.
1. Lumentum Holdings Inc. (NASDAQ:LITE)
Number of Hedge Fund Holders: 123
Lumentum Holdings Inc. (NASDAQ:LITE) is one of the Best Fiber Optics Stocks to Buy for the AI Data Center Boom. On June 9, 2026, Needham & Company reiterated its Buy rating on Lumentum and maintained a $1,040 price target, extending a bullish view closely tied to AI optical networking. Needham analyst Ryan Koontz has described Lumentum as a 2026 “pick of the year,” with the firm’s thesis resting on AI-driven demand as data centers shift more traffic from copper links to optical connections.
The call is not without valuation risk, since the stock has already had a large run, and expectations around AI optics are high. Still, Needham’s maintained target suggests confidence that Lumentum can keep benefiting as hyperscalers build denser AI clusters that need faster links between accelerators, switches, and racks. The company’s role in optical components and photonics gives it direct exposure to that bandwidth problem rather than just a loose AI label.
Lumentum Holdings Inc. (NASDAQ:LITE) supplies optical and photonic products used in cloud networking, AI infrastructure, advanced communications, industrial lasers, and 3D sensing. Its portfolio includes optical components, modules, transceivers, lasers, and subsystems.
While we acknowledge the potential of LITE to grow, our conviction lies in the belief that some other AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LITE and that has 100x upside potential, check out our report about the cheapest AI stock.
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