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Nvidia chief hails optical suppliers — breakout trade on Lumentum and Coherent

Nvidia's CEO made positive comments about Marvell Technology and the broader optical component sector, causing stocks like Lumentum and Coherent to surge as investors anticipate higher demand for AI infrastructure.

Idea

As artificial intelligence data centers grow, they need much faster connections, which rely on optical components. When the leader of Nvidia, a major AI pioneer, publicly praises this sector, the market usually pays attention and keeps buying. These supplier companies are the 'picks and shovels' of the AI gold rush, meaning they profit regardless of which specific software wins out. This recent surge in enthusiasm suggests there is room for these stocks to run higher as the infrastructure build-out continues.

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COHRLITEMRVLH4#ai_hardware#semiconductors#momentum

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