tech
March 3, 2026
Nvidia is investing in these two stocks. Wall Street says you should too
A pair of photonics firms are set to receive a combined $4 billion from Nvidia. These stocks are also likely to gain ground, per analysts.
TL;DR
- Nvidia is investing a combined $4 billion in Lumentum and Coherent.
- Analysts recommend these photonics stocks, citing reduced competitive pressures and U.S. manufacturing importance.
- The investment supports Nvidia's co-packaged optics strategy for improved AI data processing efficiency.
- Significant market impact from co-packaged optics is not expected until at least 2029.
- Analysts have raised price targets for both Lumentum and Coherent.
- Both stocks have seen substantial gains in 2026 and are contenders for the S&P 500.
- Lumentum and Coherent have market capitalizations exceeding $50 billion.
Continue reading the original article