Nvidia's CEO just hyped the entire optical sector — catch Lumentum and Coherent while they're hot
Nvidia's CEO Jensen Huang just publicly praised Marvell Technology and said the age of 'useful AI' has arrived. His comments are sending optical-component stocks — the companies that make the hardware connecting AI data centers — sharply higher.
Idea
When the most influential person in AI — Nvidia's Jensen Huang — goes on stage and specifically highlights a sector, money follows. He just predicted Marvell will hit a $1 trillion valuation and said 'useful AI has arrived,' which lit a fire under the companies that make optical components (the high-tech connectors inside AI data centers). Lumentum and Coherent are both surging. These companies are the 'picks and shovels' of the AI buildout — they don't need to win the AI race themselves, they just need data centers to keep expanding. With Alphabet announcing an $80 billion AI infrastructure spend and the broader AI rally stretching into its ninth day, the optical-component makers are catching a fresh wave of investor attention that could carry them higher for days or weeks.