The AI infrastructure trade faced a sharp reality check Tuesday as a selloff in optical component stocks spread to ETFs targeting a key but less-discussed part of the artificial intelligence boom: fiber optics and photonics.AI’s Next BottleneckWhile Nvidia Corp (NASDAQ:NVDA) and other chipmakers have dominated the AI investment narrative, investors are increasingly focusing on the infrastructure needed to support increasingly complex AI workloads.AI data centers require massive amounts of bandwidth to move data between GPUs, servers and storage systems. Fiber optics, optical transceivers, lasers and photonic technologies are becoming critical as companies look to improve speed, reduce latency and lower power consumption.Tuesday’s selloff, however, highlighted concerns that AI infrastructure suppliers may face tougher growth expectations despite long-term demand.LUMA: A Direct Play on AI Optical InfrastructureAmong the hardest-hit ETFs was LUMA, which provides targeted exposure to companies involved in photonics and optical communications.The fund includes companies across the optical supply chain, including:
Lumentum Holdings, which develops optical and photonic products used in communications networks.
