AI spending spree triggers — load up on optical stocks powering the data-center boom
Nvidia's CEO Jensen Huang said on stage that Marvell Technology could reach a $1 trillion valuation, sending optical and AI-chip stocks soaring. Separately, Alphabet just announced plans to raise $80 billion to build more AI data centers, which means these companies that supply the networking hardware stand to benefit directly.
Idea
AI data centers need massive amounts of optical networking gear to connect thousands of chips together at high speed. Alphabet committing $80 billion to AI buildout is a direct demand signal for companies like Lumentum and Coherent that make the lasers and connectors. Jensen Huang's public endorsement of Marvell adds a powerful catalyst — when the most influential figure in AI hardware praises a company, institutional money tends to follow. Broadcom also jumped 6% on the same news, confirming the whole supply chain is moving together. Buying a basket of these names spreads your bet across the theme rather than picking a single winner.