Nvidia's CEO talks up optical components — catch the rally on Lumentum and Coherent
Nvidia's CEO Jensen Huang publicly praised Marvell and sparked a rally across optical component makers like Lumentum and Coherent. At the same time, Nvidia is forecasting a $200 billion market for data center CPUs — including China — signaling massive buildout ahead for the hardware that connects AI systems together.
Idea
Optical components are the plumbing that connects AI data centers together — and Nvidia's CEO just gave the sector a glowing endorsement. When the most important figure in AI hardware highlights a supply chain, that group tends to rally for weeks as investors re-price the growth outlook. Lumentum and Coherent are pure-play optical names that stand to benefit most from the $200 billion data center buildout Nvidia is forecasting. These are smaller companies that can move fast on a big catalyst, and the volume spike confirms institutional money is already rotating in.