Nvidia's CEO hypes optical components as AI's backbone — long Lumentum and Coherent
Nvidia's CEO Jensen Huang went on stage and praised Marvell Technology, saying it could hit a $1 trillion valuation. That endorsement is sending a wave of excitement through companies that make optical components — the parts that connect AI data centers together at blazing speed.
Idea
When Nvidia's Jensen Huang talks up a sector, investors listen — and right now he's highlighting optical components as essential infrastructure for AI. Companies like Lumentum and Coherent make the high-speed connectors that link together the massive AI data centers being built worldwide. This isn't just hype; Alphabet just announced an $80 billion fundraise for AI buildout, and other tech giants are spending similarly. Optical component makers are the 'picks and shovels' of this AI construction boom — they supply the gear everyone needs regardless of which AI model wins. The rally has strong momentum behind it and could continue as more AI infrastructure spending gets announced.