Nvidia's CEO hypes optical stocks as AI spending hits $150 billion — ride Lumentum and Coherent higher
Nvidia's CEO publicly praised optical-component makers, sending their stocks surging. At the same time, SoftBank is pouring €75 billion into AI data centers and Alphabet is raising $80 billion for AI infrastructure — meaning demand for the hardware that connects AI systems is exploding.
Idea
Jensen Huang's public endorsement of Marvell sparked a broad rally in optical-component stocks like Lumentum and Coherent. These companies make the lasers and connectors that let data centers talk to each other at enormous speed — exactly what every new AI data center needs. With SoftBank committing €75 billion to build the largest AI data hub in France and Alphabet raising $80 billion for its own AI buildout, the pipeline of orders for optical gear is growing fast. When the CEO of the world's most important AI chip company points to a specific supply chain, the market usually keeps bidding those names up for weeks.