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      Goldman Sachs Reports Significant Growth in Optical Networks for AI Infrastructure

      Goldman Sachs' Global Technology Equity Research Team has projected a substantial increase in the Total Addressable Market (TAM) for optical networks, estimating it will grow ninefold to reach $154 billion by 2028. This growth is attributed to the expanding infrastructure for artificial intelligence (AI), which enhances the computing capabilities of AI chips by enabling the connection of multiple chips for efficient data exchange and reduced latency.

      The report, released on April 17, 2026, highlights that the dollar content associated with horizontal and vertical scaling of AI infrastructure is expected to increase significantly, with horizontal scaling seeing a 16-fold increase and vertical scaling a 45-fold increase. Notably, the TAM for optical networks is anticipated to expand 13 times as configurations evolve from horizontal to vertical scaling, with the market for pluggable optical modules projected to grow tenfold between the second half of 2025 and the second half of 2027.

      The analysis indicates that the total dollar content for each computing unit will rise dramatically, from $315,000 for the GB300 NVL72 to $9.4 billion for the Rubin Ultra NVL576, marking a 29-fold increase. The report emphasizes that 69% of the projected TAM, amounting to $106 billion, will stem from vertical scaling, underscoring the critical role of optical networks in the future of AI technology.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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