Key Points
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Nvidia announced a $2 billion investment in both Lumentum and Coherent as part of multiyear strategic partnerships.
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On March 23, 2023, Lumentum and Coherent were admitted to the S&P 500 index.
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Over the past year, Lumentum’s stock increased by 279% and Coherent’s surged by 932%.
Nvidia, a leader in artificial intelligence, is investing $2 billion in each of the optics technology companies, Lumentum and Coherent. This announcement follows a significant partnership aimed at enhancing data center infrastructure, particularly in optical interconnect technology essential for AI networks.
Both companies were officially admitted to the S&P 500 index on March 23, 2023, a move that is expected to enhance their visibility and appeal to investors. Lumentum and Coherent have experienced significant stock price increases over the last year, with valuations trading at 34 and 45 times their expected earnings, respectively.
