Nvidia's CEO hails the dawn of 'useful AI,' optical stocks rocketing — ride the momentum on Lumentum and Coherent
Nvidia's CEO Jensen Huang publicly declared that 'useful AI has arrived' and predicted Marvell Technology will reach a $1 trillion valuation. At the same time, Alphabet announced plans to raise $80 billion to fund its AI infrastructure buildout. These twin endorsements sent optical component and chip stocks surging.
Idea
Nvidia's Jensen Huang went on stage in Taipei and told the world that Marvell is headed for a $1 trillion valuation — and that 'useful AI has arrived.' That endorsement rippled across the entire optical networking supply chain, sending Lumentum and Coherent sharply higher. At the same time, Alphabet is raising $80 billion in fresh stock to pour into AI data centers, confirming that the biggest tech companies aren't slowing their spending. Optical component makers are the picks-and-shovels play here: they sell the lasers and connectors that wire AI servers together. When demand signals are this loud from multiple directions, the companies supplying the physical gear tend to keep running.