# Nvidia's CEO hails the dawn of 'useful AI,' optical stocks rocketing — ride the momentum on Lumentum and Coherent

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

> Canonical page: https://commonquant.ai/research/for-you/nvidia-s-ceo-hails-the-dawn-of-useful-ai-optical-stocks-rock--e693a7be-0f99-49b1-8a50-b80b6be6e71c

Nvidia's CEO Jensen Huang publicly declared that 'useful AI has arrived' and predicted Marvell Technology will reach a $1 trillion valuation. At the same time, Alphabet announced plans to raise $80 billion to fund its AI infrastructure buildout. These twin endorsements sent optical component and chip stocks surging.

## Idea

Nvidia's Jensen Huang went on stage in Taipei and told the world that Marvell is headed for a $1 trillion valuation — and that 'useful AI has arrived.' That endorsement rippled across the entire optical networking supply chain, sending Lumentum and Coherent sharply higher. At the same time, Alphabet is raising $80 billion in fresh stock to pour into AI data centers, confirming that the biggest tech companies aren't slowing their spending. Optical component makers are the picks-and-shovels play here: they sell the lasers and connectors that wire AI servers together. When demand signals are this loud from multiple directions, the companies supplying the physical gear tend to keep running.

## Key details

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

## 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
- [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

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