Coherent and Lumentum Rally After Nvidia Highlights Optics

On Tuesday at Computex 2026 in Taipei, shares of optical networking suppliers jumped after remarks by Nvidia CEO Jensen Huang. Coherent shares rose 17% to $425.64, putting the stock on track for an all-time closing high. Lumentum climbed 13% and fiber-maker Corning advanced about 13%. Marvell also posted a sharp gain after comments from Huang.

Huang addressed the limits of copper for high-speed data transmission and the role of optical connectivity in larger AI data centers. He told the Computex audience, “We should use copper as much as we can, for as long as we can, but copper has its limits… You use optics wherever you must, you use copper wherever you can.”

Market activity centered on companies that supply hardware linking servers inside data centers. Marvell produces digital signal processors used in optical transceivers that connect servers. Coherent makes optical transceivers and related components for moving data across hyperscale AI clusters. Lumentum supplies optical modules and components and has a formal partnership with Marvell.

Analyst coverage shifted along with the rally. Recent ratings from TD Cowen, Rosenblatt and Stifel produced an average price target of $410.67 for Coherent; the stock traded above that level after Tuesday’s gains.

Nvidia has committed capital to several companies in the sector over the past three months. The company invested $2 billion each in Lumentum and Coherent, committed $500 million to Corning for advanced optical connectivity, and participated in a $500 million funding round for Ayar Labs.

Trading extended to investment vehicles tied to data center development. The Global X Data Center & Digital Infrastructure ETF, which tracks companies across the data center ecosystem, has risen roughly 50% year-to-date.