Nvidia's CEO shines spotlight on optical stocks — catch the Lumentum and Coherent rally
Nvidia's CEO Jensen Huang publicly praised Marvell Technology and said AI is driving massive demand for optical components — the parts that connect data center servers at high speed. Stocks like Lumentum and Coherent, which make those parts, are surging.
Idea
Optical components are the plumbing that makes AI data centers work — they're essential for moving huge amounts of data between servers at lightning speed. When Nvidia's CEO specifically highlights demand in this area, it's a strong signal that orders and revenue are about to ramp for suppliers like Lumentum and Coherent. These stocks have been relatively ignored compared to the big AI names, so they have more room to run as investors look for 'the next beneficiary' of the AI buildout. Alphabet's separate announcement of an $80 billion fundraising for AI infrastructure confirms that spending is only accelerating. That creates a multi-quarter tailwind for anyone selling the picks and shovels of AI.