Key Takeaways
While Nvidia's ( NVDA ) stock made modest gains Wednesday in the wake of CEO Jensen Huang’s keynote Tuesday, shares of several partners surged on expectations they could benefit from ties to the chipmaker.
Coherent ( COHR ), which produces components used in data centers, saw its stock jump close to 7%, while shares of server maker Supermicro ( SMCI ) and Amphenol ( APH ), which makes copper cables for Nvidia, added close to 6%. Nvidia shares edged about 2% higher.
Corning ( GLW ), Lumentum ( LITE ), and Fabrinet ( FN ) shares climbed as well, with JPMorgan analysts telling clients the companies could be poised for growth as Nvidia's clients scale their artificial intelligence capabilities.
The analysts said Huang “alleviated investor concerns” by telling GTC attendees he believes data center capital expenditures could exceed $1 trillion by 2028. Some investors have worried about the impact of lower-cost AI models, like DeepSeek’s R1 , on companies' willingness to invest in AI infrastructure, JPMorgan said.
Wedbush analysts said they expect strong demand for Nvidia's chips could have a "ripple impact,” estimating that for every $1 spent on an Nvidia chip there could be a $8 to $10 multiplier "across the tech ecosystem with the hyperscalers, software, data center buildouts, cyber security, and energy demand all benefiting.”
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