Nvidia's CEO hypes AI optical parts — ride the momentum on Lumentum and Coherent
Nvidia's CEO Jensen Huang publicly predicted Marvell Technology will reach a $1 trillion valuation, and praised the coming wave of AI-driven optical components. That endorsement sent optical-parts makers like Lumentum and Coherent sharply higher in a single session.
Idea
When the most influential figure in AI hardware singles out a sector on stage at a major trade show, it tends to draw sustained buying from funds that track AI supply-chain themes. Optical components — the parts that move data between AI chips at light speed — are the direct bottleneck Nvidia needs solved. Lumentum and Coherent are two of the biggest pure-play makers of those parts and both surged on the comments, but momentum in AI-hardware names has historically continued for 1–2 weeks after a high-profile endorsement. The risk is that some of the move was speculative and a pullback could occur if the broader market weakens, so a tight trailing stop helps protect gains.