By Liz Napolitano
Publication Date: 2026-03-03 17:08:00
Investors would be wise to snap up two photonics stocks that are slated to receive several billion dollars from Nvidia, according to several analysts. On Monday, Nvidia said it would allocate a combined $4 billion to Lumentum and Coherent in a bid to develop research pipelines and supply chains for its major artificial intelligence infrastructure buildout. Coherent closed more than 15% higher on the news, while Lumentum surged nearly 12%. Shares were both lower on Tuesday amid a broad market sell-off. COHR LITE 5D mountain Coherent and Lumentum shares in the past five days “We view [the investment] as an overall positive for both Coherent and Lumentum, given consistent concerns regarding competitive pressures, particularly from Asia‑based peers, as it underscores the importance of an optical portfolio that extends beyond the transceiver design into critical components and a U.S. manufacturing presence,” JPMorgan analyst Samik Chatterjee said Monday in a note to investors. JPMorgan has an overweight rating on both stocks. Chatterjee added, “the announcements, in our view, highlight the importance of securing capacity, particularly relative to U.S. manufacturing, in addition to furthering [Nvidia’s] relationship with both Coherent and Lumentum — both of which were early partners in Nvidia’s [co-packaged optics] roadmap.” Nvidia’s co-packaged optics strategy refers to integrating silicon photonics into network switch application specific integrated circuits, or ASICs, to…
