Nvidia's CEO just lit a fire under optical stocks — ride the AI momentum on Lumentum and Coherent
Nvidia CEO Jensen Huang praised Marvell Technology at the Computex trade show and said the age of 'useful AI' has arrived. His comments triggered a huge rally in optical component makers like Lumentum and Coherent, whose parts are essential for AI data centers.
Idea
When Nvidia's CEO publicly hypes a sector, the market pays attention — and optical component makers are the pick-and-shovel plays behind the AI data center buildout. Lumentum and Coherent make the lasers and connectors that shuttle data at lightning speed inside AI servers, so they win no matter which big tech company is buying. These stocks are still relatively small compared to the AI giants, which means even modest order growth can move the needle on their earnings. The initial rally on Jensen Huang's comments suggests big money is rotating in, and momentum in AI-related names has tended to persist for weeks after high-profile catalysts like this.