# Nvidia's CEO hypes optical components as AI's backbone — long Lumentum and Coherent

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

> Canonical page: https://commonquant.ai/research/for-you/nvidia-s-ceo-hypes-optical-components-as-ai-s-backbone-long--7cde7669-a0a9-467b-9275-e485757d1872

Nvidia's CEO Jensen Huang went on stage and praised Marvell Technology, saying it could hit a $1 trillion valuation. That endorsement is sending a wave of excitement through companies that make optical components — the parts that connect AI data centers together at blazing speed.

## Idea

When Nvidia's Jensen Huang talks up a sector, investors listen — and right now he's highlighting optical components as essential infrastructure for AI. Companies like Lumentum and Coherent make the high-speed connectors that link together the massive AI data centers being built worldwide. This isn't just hype; Alphabet just announced an $80 billion fundraise for AI buildout, and other tech giants are spending similarly. Optical component makers are the 'picks and shovels' of this AI construction boom — they supply the gear everyone needs regardless of which AI model wins. The rally has strong momentum behind it and could continue as more AI infrastructure spending gets announced.

## Key details

- Symbols: COHR, LITE, MRVL
- Timeframes: D
- Tags: \#ai\_infrastructure, \#optical\_networking, \#nvidia\_catalyst

## Community

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## News sources

- [HPE Rises on Sales Outlook; Victoria's Secret Soars on Profit Beat \| Stock Movers](https://www.bloomberg.com/news/videos/2026-06-02/hpe-rises-on-sales-outlook-victoria-s-secret-soars-on-profit-beat-stock-movers) — Bloomberg
- [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

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