# Nvidia hype lifts optical stocks — buy the 'picks and shovels' plays

_AI-generated trading idea · LONG · COHR, LITE_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-hype-lifts-optical-stocks-buy-the-picks-and-shovels-p--bbc1a57b-a5ca-4fd3-a84d-1385a1d94417

The CEO of Nvidia just publicly praised the demand for AI infrastructure, causing stocks that make optical components to soar. These companies provide the 'plumbing' that connects AI data centers together.

## Idea

The AI revolution requires massive data centers, and those centers need high-speed connections to function. Nvidia's CEO effectively put a spotlight on the 'picks and shovels' companies that build these optical connections. As big tech companies continue to spend billions on AI, these component suppliers are seeing a direct boost to their business. This broad enthusiasm should push these specific stocks higher in the short term.

## Key details

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

## 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

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