# Nvidia's CEO just lit a fire under optical stocks — buy the AI data-center suppliers

_AI-generated trading idea · LONG · COHR, LITE_

> Canonical page: https://commonquant.ai/research/for-you/nvidia-s-ceo-just-lit-a-fire-under-optical-stocks-buy-the-ai--ff6ae127-b940-42ce-9e7b-921739b40a0c

Nvidia's CEO just publicly praised optical component makers, sending their stocks soaring. Meanwhile, tech giants like Alphabet and SoftBank are committing over $150 billion combined to build AI data centers — all of which need optical networking parts to function.

## Idea

At a major tech conference in Taipei, Nvidia's CEO Jensen Huang specifically highlighted optical component companies as critical to the AI buildout. That endorsement sent stocks like Lumentum and Coherent rocketing. The timing matters because we're seeing unprecedented capital commitments to AI data centers — Alphabet is raising $80 billion and SoftBank is spending €75 billion on a single data hub in France. Every one of those data centers needs optical components to connect servers at the speeds AI requires. These suppliers are the pick-and-shovel plays of the AI gold rush, and they're just starting to get bid up after Nvidia's CEO put a spotlight on them.

## Key details

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

## Community

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## News sources

- [Alphabet's plan to sell $80 billion in stock to fund its AI buildout isn't all bad](https://www.cnbc.com/2026/06/02/alphabets-plan-to-sell-80-billion-in-stock-to-fund-its-ai-buildout-isnt-all-bad.html) — CNBC
- [SoftBank Bets Big on AI: €75 Billion to Build Massive French Data Hub](https://finance.yahoo.com/sectors/technology/articles/softbank-bets-big-ai-75-123419235.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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