Nvidia's CEO hypes optical stocks as AI's backbone — ride Lumentum and Coherent higher
Nvidia's CEO Jensen Huang went on stage and publicly praised Marvell Technology, saying it could reach a $1 trillion valuation. His comments lit a fire under the entire optical component sector — the companies that make the high-speed connections AI data centers depend on.
Idea
When Nvidia's CEO publicly endorses a sector from a major stage, it tends to draw sustained institutional buying for weeks — not just days. Optical component makers like Lumentum and Coherent are the picks-and-shovels play behind the AI buildout: every new AI data center needs their high-speed connectors. The AI rally has been extending for nine straight days on the S&P 500, and money is rotating from the biggest names into the supply chain. These mid-cap optical stocks have more room to run than the mega-caps that already priced in the boom.