Quick Read – Nvidia (NVDA), Corning (GLW), and Coherent (COHR) are key AI infrastructure plays, with Corning securing a strategic $3.2 billion warrant investment from Nvidia to expand optical connectivity production for AI infrastructure. – Nvidia’s investments in optical…
nnectivity companies like Corning position it to accelerate AI infrastructure buildout as data centers move beyond copper-based connections, potentially creating considerable upside if optical connectivity becomes the next critical layer of AI advancement. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Corning wasn’t one of them. Get them here FREE
Nvidia (NASDAQ:NVDA) has been on quite the investment spree in the past year, and while much of the AI bets and partnerships have begun to bear fruit after the latest run in AI-related names, questions linger as to how all these “circular” bets change the risk/reward profile of the world’s largest company. Undoubtedly, if there’s anyone who knows opportunity in the AI space, it’s Jensen Huang, who continues to demonstrate that he’s a step or maybe several steps ahead of just about anyone else. But just because some of Nvidia’s recent investments have been rewarded with early gains (think Coherent (NASDAQ:COHR), which is up more than 40% in the past three months) doesn’t mean that the Nvidia-backed companies will be standing tall and marching higher in two to three years from now, especially at today’s seemingly lofty valuations.
Either way, I do think having a Jensen premium is a big deal, as growth investors try to spot the next big growth opportunities within the AI scene. Indeed, some of the best hyper-growth kinds of plays on AI are lesser known, typically with market caps far south of $100 billion. Of course, given the pace of the gains seen across the space, it doesn’t take all too long before firms rise up the market cap rankings from seemingly out of nowhere.