Nvidia's CEO just lit a fire under optical stocks — ride the Lumentum and Coherent rally
Nvidia's CEO Jensen Huang publicly predicted Marvell will become a trillion-dollar company, and his comments lit a fire under the entire optical networking sector — stocks like Lumentum and Coherent are surging as investors realize these companies supply the hardware that connects AI data centers together.
Idea
The biggest bottleneck in AI right now isn't the chips themselves — it's moving data between them fast enough. That's exactly what optical components from companies like Lumentum and Coherent solve. When Nvidia's CEO, the most influential voice in AI, publicly champions the ecosystem around his chips, it tends to lift the entire supply chain. Lumentum and Coherent are more speculative mid-cap plays than Marvell, which means they could have more room to run if the AI spending cycle continues. The risk is that optical stocks are volatile and can give back gains quickly if the broader market weakens, so keeping a tight trailing stop is important.