# Nvidia chief hails optical suppliers — breakout trade on Lumentum and Coherent

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

> Canonical page: https://commonquant.ai/research/for-you/nvidia-chief-hails-optical-suppliers-breakout-trade-on-lumen--a4b28e33-175e-47e0-9da9-8c57d71f185a

Nvidia's CEO made positive comments about Marvell Technology and the broader optical component sector, causing stocks like Lumentum and Coherent to surge as investors anticipate higher demand for AI infrastructure.

## Idea

As artificial intelligence data centers grow, they need much faster connections, which rely on optical components. When the leader of Nvidia, a major AI pioneer, publicly praises this sector, the market usually pays attention and keeps buying. These supplier companies are the 'picks and shovels' of the AI gold rush, meaning they profit regardless of which specific software wins out. This recent surge in enthusiasm suggests there is room for these stocks to run higher as the infrastructure build-out continues.

## Key details

- Symbols: COHR, LITE, MRVL
- Timeframes: H4
- Tags: \#ai\_hardware, \#semiconductors, \#momentum

## Community

- Upvotes: 0
- Views: 0
- Copies: 0
- Cosigns: 0

## 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

## Related ideas

- [Massive $5.4 billion floods into chip stocks — ride the wave on SOXX](https://commonquant.ai/research/for-you/massive-5-4-billion-floods-into-chip-stocks-ride-the-wave-on--fe049096-c3e9-4e9b-998d-3c9ac9783518)
- [Nvidia chips are delayed but Meta is making their own — rotate into software](https://commonquant.ai/research/for-you/nvidia-chips-are-delayed-but-meta-is-making-their-own-rotate--88452303-dd1c-4d0a-a8eb-86fd695bcfbe)
- [Tesla finally delivers on its decade-old promise — ride the AI momentum into Nvidia instead](https://commonquant.ai/research/for-you/tesla-finally-delivers-on-its-decade-old-promise-ride-the-ai--a60a92d1-397e-4911-b6d2-59053bfd6e2c)

## Related

- [COHR trade ideas](https://commonquant.ai/stocks/cohr)
- [LITE trade ideas](https://commonquant.ai/stocks/lite)
- [MRVL trade ideas](https://commonquant.ai/stocks/mrvl)
- [Latest market news](https://commonquant.ai/news)