When NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang said data centers are being rewired around optical interconnects, most traders ran straight to Marvell Technology (NASDAQ:MRVL). 

Meanwhile, Coherent Corp. (NYSE:COHR) quietly hit a new all-time high, and it’s playing the exact same trade.

COHR stock is at all-time highs. See the chart and price action here. 

Optical Trade is on Fire

Huang’s bullish commentary on AI infrastructure, and specifically on the accelerating demand for high-speed optical connectivity inside hyperscale data centers, sent Marvell flying 25% and Coherent up 16% on Tuesday. 

Huang’s remarks reinforced what the optical transceiver trade has been pricing in for months: AI clusters are growing faster and require more bandwidth than anyone modeled a year ago. 

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