Marvell Technology shares jumped 32.52% to $290.79 during the Computex event in Taipei, adding roughly $61 billion in market value and lifting its capitalization to $250 billion. It was the largest single‑day gain in the company’s history.
The move followed remarks from Nvidia chief executive Jensen Huang, who publicly described Marvell as a potential “trillion‑dollar company,” triggering a sharp re‑rating across the optical module and photonics ecosystem that underpins artificial intelligence data centers.
Sector-wide gains as AI data center build‑out accelerates
Huang’s comments prompted a broad rally in companies tied to high‑speed optical connectivity, a critical component as cloud providers race to scale AI infrastructure.
- Coherent rose 17.3%
- Lumentum gained 13.3%
- Corning advanced nearly 12%
- Ciena climbed more than 8%
- Nokia also posted strong gains
Analysts said the moves reflect growing conviction that optical links, photonic components, and high‑speed interconnects will be central bottlenecks — and profit pools — in the next phase of AI data center expansion.
Corning deepens ties with Nvidia as fiber demand climbs
Corning, the global leader in optical fiber materials, now has a market capitalization near $172 billion and a share price around $197–200. In May, Nvidia committed up to $3.2 billion in warrants and funding to Corning.
The agreement requires Corning to expand U.S. optical fiber capacity by more than 50% and build three new manufacturing facilities, aimed at meeting surging demand from AI data centers.
Corning’s optical communications revenue grew 93% year‑on‑year in the first quarter of 2026, and its stock has climbed more than 315% over the past 12 months, underscoring how tightening supply in key materials is reshaping the market.
AXT dominates InP substrates but faces China risk
AXT controls an estimated 60–70% of global indium phosphide (InP) substrate production, in a market where demand exceeds supply by more than 70%.
First‑quarter 2026 revenue reached $26.9 million, up 39% from a year earlier, with InP sales at $13.6 million. The company has raised $632.5 million to double output by 2027.
However, its China‑based manufacturing footprint leaves it exposed to regional supply chain and geopolitical risks, a growing concern as photonics becomes more strategic to national AI ambitions.
Lumentum and Coherent scale advanced laser and module production
Lumentum remains the only company in mass production of 200G‑per‑lane electro‑absorption modulated laser (EML) chips, a key component for next‑generation 800G and 1.6T optical modules. The firm reported fiscal second‑quarter 2026 revenue of $665.5 million, up 66% year‑on‑year.
Nvidia has backed Lumentum with a $2 billion package of equity and long‑term purchase commitments, extending delivery schedules through 2027 and effectively securing critical capacity.
Coherent, which is vertically integrated from InP materials through to finished optical modules, posted $1.806 billion in fiscal third‑quarter 2026 revenue, a 21% increase from a year earlier. Its share price has risen about 455% over the past year, reaching $426.89 on June 2, supported by strong AI‑related orders across its photonics portfolio.
MACOM benefits from demand for ultra‑high‑speed systems
MACOM Technology, a leading supplier of high‑frequency analog chips used in optical modules, continues to ride demand for 1.6T and 3.2T systems in hyperscale data centers.
The company reported fiscal second‑quarter 2026 revenue of $288.9 million and forecast around $335 million for the next quarter. Its gross margin of 55.9% remains among the highest in the segment, highlighting the pricing power of differentiated analog components in an increasingly capacity‑constrained market.
Broadcom and Marvell battle for leadership in data center optics
Broadcom retains a commanding position in high‑end digital signal processors (DSPs) and co‑packaged optics, with a market capitalization of about $1.5–2.3 trillion and a share price near $487. The company has become a cornerstone supplier for AI data center networking silicon.
Marvell, meanwhile, has built a broad optical and networking stack through acquisitions including Inphi, Celestial AI, and XConn. Its portfolio now spans custom ASICs, optical DSPs, silicon photonics, and CXL switching.
The company projects fiscal 2028 revenue of $16.5 billion, with more than 75% expected from data center‑related business, positioning it as one of the most leveraged names to AI infrastructure growth.
Credo, Applied Optoelectronics, and Fabrinet ride hyperscale orders
Credo, valued between $60 billion and $80 billion, focuses on active electrical cables (AECs) that replace short‑range optical links inside data centers. Second‑quarter 2026 revenue surged 272% year‑on‑year to $268 million, reflecting rapid adoption of its copper‑based interconnect technology as cloud operators seek cost and power savings at the rack level.
Applied Optoelectronics, with a valuation between $12 billion and $15 billion, has secured more than $200 million in hyperscaler orders for its 800G optical modules. The company expects annual revenue to exceed $1 billion in 2026, driven by volume ramps in AI and cloud data centers.
Fabrinet, valued at about $24 billion, manufactures optical components and modules for many of the sector’s leading brands from facilities in Thailand. It recently issued record quarterly revenue guidance between $1.25 billion and $1.29 billion, signaling strong, broad‑based demand across its customer base.
Nokia expands optical reach with Infinera deal
Nokia has strengthened its position in data center interconnect and AI backbone networks through the acquisition of Infinera.
In the first quarter of 2026, Nokia’s optical networking business grew 20% year‑on‑year, while cloud‑related sales rose 49% and overall profit increased 54%. Its share price reached a 16‑year high of $16.25, reflecting rising confidence in its role in next‑generation AI transport networks.
Lightwave Logic targets next‑gen materials for ultra‑fast links
Lightwave Logic, with a market value of about $1.7 billion, is developing electro‑optic polymer materials designed to enable modulators with bandwidth beyond 110GHz, potentially lowering power consumption and cost for ultra‑high‑speed links.
In March 2026, the company signed an integration agreement with Tower Semiconductor to incorporate its polymer platform into Tower’s photonics processes. Engineering tapeouts are scheduled for 2026, with initial commercial deployment targeted for 2027.
Supply constraints and manufacturing capacity define next phase
Across the photonics and optical stack, analysts say the momentum around Marvell and its peers reflects a broader shift: as AI data centers proliferate, performance bottlenecks are moving from GPUs to the surrounding network.
From optical fiber and InP substrates to EML lasers, DSPs, and advanced packaging, the availability of materials, chips, and manufacturing capacity is emerging as the key constraint — and the main driver of valuations — across the global photonics supply chain.
Want to trade AI-driven market moves like Marvell’s surge? Explore opportunities on our markets opportunity hub today.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
