Dave Mazza

Optical networking components are the next bottleneck in AI infrastructure because they enable semiconductor chips to communicate effectively. As AI demand grows and new chips like Nvidia's Vera Rubin require even more memory, optical companies will see sustained demand. Specific names include Credo, Coherent, and Lumen.

Optical networking components are the next bottleneck in AI infrastructure because they enable semiconductor chips to communicate effectively. As AI demand grows and new chips like Nvidia's Vera Rubin require even more memory, optical companies will see sustained demand. Specific names include Credo, Coherent, and Lumen.

Memory chips are the biggest bottleneck in the AI buildout, with a significant supply-demand imbalance that will persist for years because it takes three to five years to build new fabrication plants. The demand from data centers and hyperscaler capex is shifting memory from cyclical to structural growth, extending the imbalance into 2026-2028. This makes DRAM stocks attractively valued despite recent price momentum.

The HALO ETF invests in companies with heavy physical assets and low obsolescence risk, making them immune to AI disruption. These are durable businesses that can withstand advances in large language models and agentic AI because their value is in hard assets, not software or services that could be displaced. The ETF provides a way to own the market while avoiding the most disruptive, AI-vulnerable names.

Optical names like Credo, Coherent, and Lumentum are critical for enabling semiconductor chips to communicate with each other in data centers. As AI compute scales, these interconnect components represent the next bottleneck after memory, making them compelling plays on continued AI infrastructure buildout.

Optical networking components are the next bottleneck in AI infrastructure because they enable semiconductor chips to communicate effectively. As AI demand grows and new chips like Nvidia's Vera Rubin require even more memory, optical companies will see sustained demand. Specific names include Credo, Coherent, and Lumen.