Nvidia's CEO just lit a fire under optical stocks — ride the momentum on Lumentum and Coherent
Nvidia's CEO Jensen Huang went on stage and publicly predicted Marvell Technology will hit a $1 trillion valuation, calling this the age of 'useful AI.' That endorsement is igniting a rush into optical component makers — the companies that build the high-speed connectors and lasers data centers need to keep AI systems running.
Idea
When Nvidia's CEO singles out a company and its ecosystem on stage at a major trade show, investors tend to pour money into the entire supply chain. Optical component makers like Lumentum and Coherent are the behind-the-scenes suppliers that make AI data centers physically work — they provide the high-speed connections between servers. With Alphabet announcing $80 billion in AI funding and SoftBank committing €75 billion to a French data hub, the buildout is massive and real. These optical stocks are still early in their move and have room to run as more AI infrastructure spending flows through.