Nvidia's CEO lit a fire under optical stocks — ride the Lumentum and Coherent breakout
Nvidia's CEO Jensen Huang publicly predicted Marvell will become a trillion-dollar company, and separately Alphabet committed $80 billion to AI infrastructure. His comments lit a fire under the entire optical networking sector — the companies that build the high-speed connections between AI data centers.
Idea
When the most influential figure in AI singles out a supply-chain category by name, money tends to flood into every company in that niche — not just the one he mentioned. Optical components are the plumbing that connects thousands of AI chips together, and demand is being pulled forward by massive capital commitments like Alphabet's $80 billion spend. Lumentum and Coherent are pure-play optical names that still trade well below the valuations of the big chip companies, so there's room for catch-up buying. The sector is also seeing unusually high trading volume, which historically means the move has legs beyond a single day.
Key details
Community
News sources
- Why Lumentum, Coherent and other optical stocks are rocketing toward big gains — MarketWatch
- Broadcom Jumps 6% on Alphabet $80B AI Raise, Marvell Soars 18% on Jensen Huang's $1T Endorsement — Yahoo Finance
- Marvell stock soars as Nvidia CEO calls chipmaker 'the next trillion-dollar company' — Yahoo Finance