Nvidia's CEO shines a spotlight on optical components as AI buildout goes into overdrive — long Lumentum and Coherent
Nvidia's CEO Jensen Huang publicly praised Marvell and highlighted how critical optical components are for AI data centers. That sent optical networking stocks like Lumentum and Coherent soaring. Meanwhile, Alphabet just announced plans to raise $80 billion to fund its AI infrastructure buildout, signaling massive ongoing demand.
Idea
The biggest AI companies in the world are spending hundreds of billions to build data centers, and every single one of those centers needs optical components to move data between servers at high speed. Nvidia's CEO just put a spotlight on this part of the supply chain, which most investors had been overlooking. Alphabet raising $80 billion for AI infrastructure confirms the spending wave is accelerating, not slowing down. Optical component makers like Lumentum and Coherent are the picks-and-shovels play on this trend — they sell the essential hardware regardless of which AI company wins.