AI spending wave lifting optical stocks — ride Lumentum and Coherent higher
Nvidia's CEO publicly praised optical-component makers, sending their stocks soaring. At the same time, Alphabet is raising $80 billion — including a $10 billion investment from Warren Buffett's Berkshire Hathaway — to build AI infrastructure, which will need massive amounts of optical networking gear.
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Nvidia's Jensen Huang specifically called out Marvell and sparked a buying frenzy across the entire optical-components sector. Lumentum and Coherent make the lasers, transceivers, and fiber connectors that physically wire together AI supercomputers — they are the picks-and-shovels play on the AI buildout. Meanwhile, Alphabet just committed $80 billion to AI infrastructure with Berkshire Hathaway's backing, confirming that the biggest investors on earth view this as a multi-year spending cycle, not a fad. When you have Nvidia hyping a subsector and hundreds of billions in committed capital behind it, the suppliers tend to keep running.