Goldman Sachs: Optical Networking Emerges as Next AI Infrastructure Trend, TAM to Reach $154 Billion

Goldman Sachs' global technology equity research team released a report on April 17, 2026, highlighting optical networking as a key driver for AI infrastructure. By connecting multiple chips to enable seamless data exchange and low latency, the technology is expected to expand the Total Addressable Market (TAM) ninefold to $154 billion. The report notes significant growth in dollar content for both scale-out and scale-up architectures, with optical TAM for these segments expanding 13 times. The value of pluggable optical modules in scale-out architectures i