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Nvidia's CEO just hyped up AI's 'picks and shovels' — momentum play on optical stocks

The CEO of Nvidia just publicly praised the future of AI infrastructure, specifically calling out companies that build the optical components connecting massive AI computers together. This sparked a massive rally in the companies that make these parts.

Idea

You can't build massive AI data centers without the high-speed cables and lasers that connect the chips together—these are known as optical components. The endorsement from Nvidia's CEO signals that the build-out of AI infrastructure is far from over, creating a massive wave of new orders for these specialized hardware companies. Since these parts are absolutely essential for AI to function, companies like Lumentum and Coherent stand to benefit directly from the continued tech spending boom.

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COHRLITEMRVLD#ai#hardware#momentum

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