AI Boom Triggers Rally in Cloud, Chip, and Cable Stocks

Growing demand for artificial intelligence sparked gains across three corners of the technology sector on Thursday, May 8, highlighting how investment tied to AI is expanding beyond graphics processors and into the wider digital infrastructure ecosystem. 

One of the clearest signals came from investment firm Deutsche Bank, which raised its rating on cable manufacturer Prysmian from “Hold” to “Buy,” while introducing a new target price of €167 ($196.87). Industry analysts say that the company is strategically positioned within several critical pressure points supporting AI growth. These include electricity grid systems, optical fiber networks that enable communication between servers, and medium-voltage connections feeding data centers. 

A major factor behind renewed optimism surrounding Prysmian is the rising cost of optical fiber. Deutsche Bank noted that the growing use of AI inference, where models process requests and generate outputs in real time, has significantly increased the amount of data moving both within and between data facilities. As a result, demand for faster, more reliable connectivity has climbed sharply, helping push fiber pricing higher. 

The bank also suggested that Prysmian may benefit from its manufacturing footprint in the U.S. Since only a limited number of producers maintain domestic fiber capacity, the company could secure extended supply agreements with large-scale cloud operators preparing to expand infrastructure over the next year and beyond. Analysts believe this positioning may strengthen earnings momentum after a temporary slowdown. 

At the same time, semiconductor and networking company Broadcom introduced a fresh update to its private AI infrastructure offering. On May 5, the company launched VMware Cloud Foundation version 9.1, designed to support businesses seeking to manage AI workloads inside their environments rather than relying entirely on public cloud providers. 

According to reports, the platform can oversee as many as 5,000 hosts while helping businesses cut server expenses through intelligent memory optimization. The system is built to work across hardware supplied by chipmakers including NVIDIA, AMD, and Intel. Broadcom says the software also includes a zero-trust security model, aimed at companies prioritizing privacy and tighter operational control for AI deployment. 

Meanwhile, chipmaking giant TSMC revealed new details about its semiconductor roadmap during its North America Technology Symposium in April. The company introduced its planned A13 manufacturing process, expected to enter production in 2029 and intended for artificial intelligence, high-performance computing, and mobile devices. 

The upcoming process is expected to deliver improved energy efficiency while reducing chip size compared with earlier designs. TSMC also outlined future packaging technologies and manufacturing platforms that could support increasingly powerful AI accelerators used by hyperscale computing providers. 

Taken together, these developments suggest that investor attention around AI is beginning to widen. While chipmakers such as NVIDIA remain central to the AI narrative, the latest signals indicate opportunities may also emerge in sectors supporting connectivity, cloud systems, and advanced production capabilities. 

Beyond those firms that have dominated global headlines regarding AI, others like GlobalTech Corp. (OTC: GLTK) are quietly carving out a niche for themselves as providers of AI-powered solutions in various domains like ecommerce, enterprise productivity and digital lending. 

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