NVIDIA's CEO just hyped the optical suppliers behind AI — ride the momentum on Marvell, Lumentum, and Coherent
NVIDIA's CEO Jensen Huang publicly said onstage that Marvell Technology could reach a $1 trillion valuation, and praised the companies that build the optical parts connecting AI data centers together. Those supplier stocks immediately took off.
Idea
When the most influential leader in AI singles out a company by name and says it could be worth $1 trillion, investors pay attention and re-price the stock quickly. Marvell makes custom chips that AI data centers depend on, and Lumentum and Coherent build the optical connections those data centers need to talk to each other at high speed. NVIDIA's CEO essentially gave a public endorsement of the entire optical supply chain, which is why those stocks are rocketing. Momentum like this, triggered by a major catalyst from an industry kingmaker, tends to carry forward for days as fund managers reallocate toward the theme.