Jensen Huang says Marvell will hit $1 Trillion — catch-up trade on optical stocks
Nvidia's CEO Jensen Huang just predicted that Marvell Technology will hit a $1 trillion valuation. This massive endorsement is triggering a rush into Marvell and the lesser-known companies that make the optical parts needed for AI data centers.
Idea
When the most influential figure in AI gives a huge endorsement to a company, it usually spills over to the entire supply chain. Marvell soared 18% on the news, but the companies that build the actual optical hardware—like Lumentum and Coherent—are just starting to catch fire. With Alphabet announcing an $80 billion raise to fund AI infrastructure, demand for these networking components is set to surge. Traders can look to ride this wave by buying the optical component makers that are still playing catch-up to Marvell's massive jump.