Nvidia's CEO hails the 'useful AI' era — ride the optical-stock surge on Lumentum and Coherent
Nvidia's CEO Jensen Huang publicly praised Marvell Technology and said the era of 'useful AI' has arrived, sending optical-component stocks surging. Companies that make the high-speed connections linking AI servers together are catching a massive bid.
Idea
When the most influential voice in AI hardware publicly predicts one company will reach a $1 trillion valuation, the entire supply chain takes off. Optical components — the high-speed links connecting thousands of AI chips inside data centers — are the picks-and-shovels of this boom. Lumentum and Coherent both make these critical parts and are surging on the endorsement. With AI data-center buildouts accelerating (Alphabet alone is raising $80 billion for AI infrastructure), demand for optical networking gear should only intensify in coming quarters.