# Nvidia's CEO hypes optical tech as AI's backbone — catch the rally in Lumentum and Coherent

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

> Canonical page: https://commonquant.ai/research/for-you/nvidia-s-ceo-hypes-optical-tech-as-ai-s-backbone-catch-the-r--d37d1efc-da02-421d-a6d7-706d9f2a5162

Nvidia's CEO Jensen Huang went on stage and predicted Marvell Technology will hit a $1 trillion valuation, calling this the era of 'useful AI.' His comments lit a fire under optical component makers like Lumentum and Coherent, whose products are essential for AI data centers.

## Idea

When Nvidia's Jensen Huang publicly praises a company and predicts a $1 trillion valuation, the market listens — and the excitement spills over to the whole supply chain. Optical components from companies like Lumentum and Coherent are the physical backbone that makes AI data centers possible, so any surge in AI investment flows directly to them. These are smaller companies that can move fast when big-money attention shifts their way. The risk is that this kind of hype-driven rally can reverse quickly if the broader market turns sour.

## Key details

- Symbols: COHR, LITE, MRVL
- Timeframes: 1D
- Tags: \#ai, \#optical\_networking, \#momentum

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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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