# Nvidia's CEO lit a fire under optical stocks — ride the Lumentum and Coherent breakout

_AI-generated trading idea · LONG · COHR, LITE, MRVL_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-s-ceo-lit-a-fire-under-optical-stocks-ride-the-lument--70cfbb5f-256f-489c-9e52-50b0c42a70e6

Nvidia's CEO Jensen Huang publicly predicted Marvell will become a trillion-dollar company, and separately Alphabet committed $80 billion to AI infrastructure. His comments lit a fire under the entire optical networking sector — the companies that build the high-speed connections between AI data centers.

## Idea

When the most influential figure in AI singles out a supply-chain category by name, money tends to flood into every company in that niche — not just the one he mentioned. Optical components are the plumbing that connects thousands of AI chips together, and demand is being pulled forward by massive capital commitments like Alphabet's $80 billion spend. Lumentum and Coherent are pure-play optical names that still trade well below the valuations of the big chip companies, so there's room for catch-up buying. The sector is also seeing unusually high trading volume, which historically means the move has legs beyond a single day.

## Key details

- Symbols: COHR, LITE, MRVL
- Timeframes: daily
- Tags: \#momentum, \#semiconductors, \#ai\_infrastructure

## Community

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## News sources

- [Why Lumentum, Coherent and other optical stocks are rocketing toward big gains](https://www.marketwatch.com/story/why-lumentum-coherent-and-other-optical-stocks-are-rocketing-toward-big-gains-d5a2e9c7?mod=mw_rss_topstories) — MarketWatch
- [Broadcom Jumps 6% on Alphabet $80B AI Raise, Marvell Soars 18% on Jensen Huang's $1T Endorsement](https://finance.yahoo.com/markets/stocks/articles/broadcom-jumps-6-alphabet-80b-132541999.html) — Yahoo Finance
- [Marvell stock soars as Nvidia CEO calls chipmaker 'the next trillion-dollar company'](https://finance.yahoo.com/markets/article/marvell-stock-soars-as-nvidia-ceo-calls-chipmaker-the-next-trillion-dollar-company-130932917.html) — Yahoo Finance

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