Nvidia's CEO just boosted the unsung heroes of AI — jump on optical stocks like Lumentum and Coherent
Nvidia's CEO Jensen Huang publicly praised optical-component makers — the companies that build the high-speed connectors inside AI data centers. That sent stocks like Lumentum and Coherent soaring, and with Alphabet announcing $80 billion in new AI spending, demand for these parts should keep growing.
Idea
The AI rally is expanding beyond the big names like Nvidia into the companies that supply the physical infrastructure — specifically optical components that move data at light speed inside AI data centers. Nvidia's CEO essentially gave these companies a public endorsement, which is a powerful signal. On top of that, Alphabet just committed to raising $80 billion for AI infrastructure, and SpaceX's IPO is bringing even more attention to the tech sector. When a theme gets this much momentum and fresh capital behind it, the suppliers — especially smaller ones that were overlooked — tend to outperform. Lumentum and Coherent make the actual parts, while Marvell designs the chips that connect everything together.