Nvidia's CEO hails 'useful AI era' — catch the optical stock surge powering data centers
Nvidia's CEO Jensen Huang said the era of 'useful AI' has arrived and predicted Marvell Technology will reach a $1 trillion valuation. His comments are fueling a rally in optical component makers like Lumentum and Coherent.
Idea
AI data centers need optical networking components to move enormous amounts of data between servers — they're the plumbing behind the AI revolution. Nvidia's Jensen Huang just put a massive spotlight on this supply chain at Computex, specifically praising Marvell and sending optical stocks like Lumentum and Coherent surging. With Alphabet raising $80 billion to build AI infrastructure and the S&P 500 on a nine-day winning streak driven by AI enthusiasm, these picks-and-shovels companies are in the sweet spot. The momentum is fresh and the story is simple: more AI spending means more demand for optical parts.