Optical tech stocks soar up to 1,137% as AI drives demand for faster data transmission.

Optical technology stocks linked to AI have surged dramatically over the past year, with companies like Lumentum gaining 1,137%, far outpacing the Nasdaq 100's 23% return. This rally is driven by the critical role of optical components in next-gen AI infrastructure, enabling faster, more efficient data transmission in data centers. The shift from copper to optical tech addresses power and bandwidth limits in large AI systems, supported by massive investments from hyperscalers and Nvidia's $4 billion commitment to key optical firms. Analysts expect continued growth in the optical transport market, despite some recent volatility due to broader semiconductor sector weakness.