Nvidia's CEO just hyped the optical networking sector — jump on Lumentum and Coherent before they run further
Nvidia's CEO Jensen Huang went on stage and praised Marvell Technology, saying it could hit a $1 trillion valuation. His comments lit a fire under the entire optical networking sector, sending stocks like Lumentum and Coherent soaring.
Idea
When Nvidia's Jensen Huang publicly predicts a company will reach a $1 trillion valuation, the market listens. His comments about Marvell at Computex sparked a rush into optical component makers — the companies that build the high-speed connections AI data centers desperately need. Lumentum and Coherent were already rocketing on the news, and this kind of broad sector enthusiasm from a credible catalyst usually has legs. These smaller optical companies are the picks-and-shovels play on the AI infrastructure buildout that Alphabet is spending $80 billion on. If the AI rally continues, demand for optical components should keep climbing.