Nvidia's CEO sparks a rally in optical stocks — catch the AI plumbing play
Nvidia's CEO Jensen Huang went on stage and praised Marvell Technology, predicting it could become a trillion-dollar company. His comments lit a fire under the whole optical networking sector — the companies that make the hardware connecting AI data centers together.
Idea
The companies that make optical components — the lasers and connectors that move data between AI servers — are surging after Nvidia's CEO Jensen Huang hyped up the entire supply chain at a major tech conference. When the most influential person in AI essentially endorses an entire sector, money tends to flood in. Lumentum and Coherent are the main players here, and they've been lagging the bigger AI names like Nvidia. Now they're playing catch-up fast. With SoftBank dropping €75 billion on a French AI data hub and Alphabet raising $80 billion for AI buildout, the demand for the physical infrastructure — the networking gear these companies make — should keep growing. This is a bet that the AI spending boom trickles down to the companies building the plumbing.