# Nvidia's CEO talks up optical components — catch the rally on Lumentum and Coherent

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

> Canonical page: https://commonquant.ai/research/for-you/nvidia-s-ceo-talks-up-optical-components-catch-the-rally-on--bf4b2216-5787-4dfc-819e-a0aa44019a29

Nvidia's CEO Jensen Huang publicly praised Marvell and sparked a rally across optical component makers like Lumentum and Coherent. At the same time, Nvidia is forecasting a $200 billion market for data center CPUs — including China — signaling massive buildout ahead for the hardware that connects AI systems together.

## Idea

Optical components are the plumbing that connects AI data centers together — and Nvidia's CEO just gave the sector a glowing endorsement. When the most important figure in AI hardware highlights a supply chain, that group tends to rally for weeks as investors re-price the growth outlook. Lumentum and Coherent are pure-play optical names that stand to benefit most from the $200 billion data center buildout Nvidia is forecasting. These are smaller companies that can move fast on a big catalyst, and the volume spike confirms institutional money is already rotating in.

## Key details

- Symbols: COHR, LITE, MRVL
- Timeframes: 1D
- Tags: \#ai\_infrastructure, \#semiconductors, \#momentum

## Community

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## News sources

- [NVIDIA (NVDA): Forecast of $200 Billion Market for CPUs Includes China, Reports CNBC](https://finance.yahoo.com/sectors/technology/articles/nvidia-nvda-forecast-200-billion-115752272.html) — Yahoo Finance
- [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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