By Simply Wall St
Publication Date: 2026-03-06 16:05:00
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Nvidia (NasdaqGS:NVDA) is committing up to US$4b across Lumentum and Coherent to support optical components for next generation AI data centers.
The agreements include multiyear supply and development plans focused on R&D and expanded US based manufacturing for optical networking hardware.
Nvidia is also halting H200 chip production for China and shifting that capacity toward its Rubin platform in response to regulatory limits.
Nvidia, best known for its GPUs and AI platforms, is leaning further into the plumbing of AI data centers by backing key optical suppliers. The focus on Lumentum and Coherent ties Nvidia more closely to components that move data efficiently between servers and within AI clusters, a growing priority as compute intensity rises. For investors watching the broader AI stack, this move highlights how critical supply chain security and power efficient networking have become.
The decision to pause H200 production for China and prioritize Rubin reflects how Nvidia is reallocating finite manufacturing capacity in light of regulation and shifting demand. For you, the key question is how these choices may influence where Nvidia’s future revenue mix and ecosystem impact are distributed over time, especially across regions and product lines.
Stay updated on the most important news stories for NVIDIA by adding it to your
