Optical and photonics products are in tremendous demand for serving global cloud and artificial intelligence (AI)/machine learning (ML) infrastructure. Large AI models require millions of graphical processing units (GPUs) working in tandem. 

As a result, the ecosystem witnesses massive growth in data throughput (as high as 400 Gbps and 800 Gbps). The traditional copper wiring is unable to carry these extremely high-speed data packets properly, as it generates excessive heat slowing down the entire AI compute clusters. 

The photonics technology solves this problem transmitting data at the speed of light through fiber optic network. Photonics enables high-speed, low-latency, and energy-efficient data transfer without overheating.

Here, we recommend investors keep a close watch on five photonics developers that have skyrocketed year to date. Industry-leading products of these companies and the unstoppable growth of AI-powered data centers make these stocks attractive investment opportunities for the long term.

These are: Corning Inc. (GLW Quick QuoteGLW - Free Report) , Lumentum Holdings Inc. (LITE Quick QuoteLITE - Free Report) , Coherent Corp. (COHR Quick QuoteCOHR - Free Report) , MACOM Technology Solutions Holdings Inc. (MTSI Quick QuoteMTSI - Free Report) and Marvell Technology Inc. (MRVL Quick QuoteMRVL - Free Report) . 

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Corning Inc.

Corning continues to strengthen its competitive position through innovation across optical connectivity, advanced glass and semiconductor applications. GLW recently launched Gorilla Glass Ceramic 3 and continues to see opportunities for advanced optics products tied to AI-driven data center build-outs and semiconductor manufacturing demand. 

Corning is also expanding its GenAI optical portfolio with multicore fiber and high-density connectivity solutions that improve network capacity and reduce installation complexity. GLW develops a wide range of photonics products, including optical fibers, high-performance cables, and specialty optical materials that serve as the backbone for AI data centers. 

GLW also announced a long-term partnership with NVIDIA Corp. (NVDA) to expand U.S.-based optical connectivity manufacturing capacity by 10 times and increase domestic fiber production capacity by more than 50%. GLW upgraded and extended its Springboard plan through 2030 and expects its new Photonics Market-Access Platform to build a $10 billion revenue stream by 2030. GLW currently carries a Zacks Rank #3 (Hold). 

Corning has an expected revenue and earnings growth rate of 13.9% and 26.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.9% in the last 60 days.

Lumentum Holdings Inc.

Lumentum designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides innovative optical and photonic products that power global communications, cloud computing, and advanced AI infrastructure.

LITE’s technology leadership in high-speed optical components has positioned it as an essential supplier to hyperscale customers deploying next-generation network architectures. LITE has a strong collaboration with NVIDIA for developing NVDA’s silicon photonics ecosystem, especially for deploying the latter’s Spectrum-X Photonics networking switches.

LITE currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Lumentum has an expected revenue and earnings growth rate of 84.8% and more than 100%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.2% in the last 30 days.

Coherent Corp.

Coherent sits at the center of the AI optics buildout, with strong demand visibility supported by long-term agreements. Mix should improve as higher-value pluggables ramp and as the shift to larger indium phosphide wafers lowers unit costs, positioning margins to expand.

COHR is positioned at the heart of the AI datacenter build-out, which has driven sustained strength in Datacenter and Communications. COHR provides highly scalable datacom transceivers, Co-Packaged Optics solutions, and high-speed VCSELs engineered to boost data center bandwidth.

COHR and NVIDIA entered into a strategic partnership focusing on next-generation optical technology and silicon photonics for AI data centers. NVDA will invest $2 billion in COHR for a multiyear agreement up to 2030. COHR currently carries a Zacks Rank #3.

Coherent has an expected revenue and earnings growth rate of 34.4% and 47.6%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 0.2% in the last 30 days.

MACOM Technology Solutions Holdings Inc.

MACOM Technology is seeing demand across AI Data Center, Industrial and Defense, and Telecom, supported by higher optical bandwidth needs, defense electronics content, and ongoing 5G and satellite programs. MTSI currently sports a Zacks Rank #1.

AI-powered data center has been MTSI’s fastest-growing business segment over the past few quarters. MTSI designs and manufactures photonic semiconductor products including high-speed lasers, photodetectors, and RF-over-fiber systems built for AI data centers, 5G wireless networks, and aerospace/defense applications.

MACOM has an expected revenue and earnings growth rate of 29.5% and 42.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2.7% in the last 30 days.

Marvell Technology Inc.

Marvell is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues. MRVL’s custom silicon strategy continues to benefit from hyperscaler demand for differentiated XPU and XPU-attach solutions. The company has highlighted more than 20 multi-generational socket wins and a broad design pipeline, which supports a longer runway than a single product cycle.

The expanded partnership with NVIDIA extends beyond a customer relationship and ties MRVL’s roadmap more directly to next-generation AI system architecture. The collaboration spans optics, NVLink Fusion integration and AI-RAN, widening the set of platforms where Marvell silicon can be pulled through. MRVL currently carries aZacks Rank #3.

During the first quarter of fiscal 2027, Marvell issued $2 billion of Series A Convertible Preferred Stock to NVIDIA, signaling strategic alignment and supporting investment in scale-up connectivity and custom platforms. Over time, this relationship can improve program access, shorten adoption cycles and broaden MRVL’s addressable opportunities across AI infrastructure builds.

Marvell has an expected revenue and earnings growth rate of 38.2% and 41.2%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 5.5% in the last 30 days.