Xin Lang Cai Jing·2026-03-02 14:11Core Insights - Nvidia is investing $2 billion each in photonics manufacturers Lumentum and Coherent to enhance its data center chips and meet the growing demand for faster AI processors [1][2] - Following the announcement, shares of Lumentum and Coherent rose over 7% in pre-market trading [2] - Nvidia executives stated in a recent earnings call that the company will leverage its substantial cash reserves to invest in the AI ecosystem, aiming to improve model computational output [2] - Photonic technology has become a mainstream solution for chip manufacturers to increase chip speed and meet higher AI inference demands [2] - The collaboration includes Nvidia providing multi-billion dollar procurement commitments and securing future access to advanced laser and optical communication products from both companies [1][2] - These investments will support the related companies in research and development, expansion, and operations, while also promoting domestic manufacturing capabilities in the U.S. [1][2]