Nvidia's CEO hypes AI networking stocks — jump on the optical picks-and-shovels trade
Nvidia's CEO Jensen Huang spoke at a major tech conference in Taiwan and singled out Marvell Technology as a future trillion-dollar company. His comments lit a fire under the entire optical networking sector — companies like Lumentum and Coherent that make the hardware connecting AI data centers together are surging.
Idea
When Nvidia's CEO — the most influential voice in AI right now — publicly praises a company on stage at Computex, the entire supply chain tends to rally. Optical component makers like Lumentum and Coherent are the unsung picks-and-shovels of the AI buildout: every massive AI data center needs their lasers and connectors to link servers together at high speed. With Alphabet raising $80 billion for AI infrastructure and HPE citing massive AI-driven server demand, the spending boom is real and accelerating. These smaller optical companies could see outsized gains because they're pure plays on the physical wiring of the AI economy.