Nvidia's CEO hails the age of 'useful AI' — optical stocks like Lumentum and Coherent are the picks-and-shovels play
Nvidia's CEO Jensen Huang publicly predicted Marvell Technology will hit a $1 trillion valuation, and said the era of 'useful AI' has arrived. That endorsement is sending optical-component stocks like Lumentum and Coherent soaring.
Idea
When Nvidia's Jensen Huang talks up a company on stage at Computex, the market listens — and he just predicted Marvell will be worth $1 trillion. His comments about 'useful AI' arriving are lifting the entire optical-component supply chain because those parts are essential for the high-speed data connections AI data centers need. Lumentum and Coherent make the lasers and connectors that shuttle data between AI servers, so they're direct beneficiaries. These smaller companies often move faster than the giants when a sector catches fire.