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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting a rotation toward essential infrastructure providers, optics and chip stocks recorded strong gains as the AI hardware demand trade broadens across the sector. Coherent shares jumped 16% while Lumentum rose 13% in midday Tuesday trading, and Applied Optoelectronics added 8% as the rally in the optics complex expanded.
This momentum follows record-breaking performances from chip giants like Nvidia and Marvell, as investors seek value in companies providing critical optical interconnect components for modern data centers. Per market data, this rally coincides with broader indices hitting record highs, reinforcing confidence in the longevity of the AI hardware growth cycle.
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Sign InTraders should watch liquidity levels within the semiconductor space, especially as upcoming economic catalysts approach. According to the economic calendar, the market is awaiting a speech from the Fed's Cook on May 27, 2026, which may provide signals regarding monetary policy and its impact on high-growth tech equities.