Nvidia announced on Monday that it was partnering with Coherent to develop optics technologies to scale data center infrastructure.
- Nvidia also said it would invest $2 billion in Coherent to support R&D, future capacity building, and operations.
- Optical interconnects and advanced package integration are foundational to the next phase of AI infrastructure, Nvidia said in a statement.
- Poet Technologies designs and develops high-speed optical engines, light source products, and custom optical modules for AI systems and hyperscale data centers.
Shares of Poet Technologies Inc. rallied over 12% on Monday following news from Nvidia Corp. that it was partnering with Coherent Corp. to develop optics technologies to scale data center infrastructure.
Poet Technologies (POET) designs and develops high-speed optical engines, light source products, and custom optical modules for artificial intelligence (AI) systems and hyperscale data centers.
What Is The Nvidia Deal?
Nvidia (NVDA) on Monday announced that it is entering into a multiyear strategic partnership with Coherent (COHR) to advance the frontier of optics technologies, including manufacturing capacity and research and development (R&D), to enable AI infrastructure development.
The non-exclusive agreement would include a multibillion-dollar purchase commitment from Nvidia, as well as future access and capacity rights for advanced laser and optical networking products. Nvidia also said it would invest $2 billion in Coherent to support R&D, future capacity building, and operations.
Optical interconnects and advanced package integration are foundational to the next phase of AI infrastructure, as they unlock ultrahigh-bandwidth, and energy-efficient connectivity across AI factories, Nvidia said in a statement.
Meanwhile, CEO of Nvidia, Jensen Huang, said that computing had been fundamentally reshaped by AI, with software now powered by real-time token generation from AI factories for every interaction and context. He added that Nvidia, through Coherent, is advancing next-generation silicon photonics to support AI infrastructure at unprecedented scale, speed, and energy efficiency.
What Did Stocktwits Users Say?
On Stocktwits, retail sentiment around POET shares jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours. Meanwhile, message volumes climbed from ‘normal’ to ‘high’ levels.
One bullish user said that Nvidia’s deal to secure optical interconnect components would pressure other AI companies to bet on Poet’s technologies. The user also suggested that Nvidia may want a deal with Poet in the future, adding that at least one or two big hyperscalers would jump on board with Poet.
Another user stated that the market rush into photonics has begun, and Poet Technologies would be a beneficiary.
Shares of POET have gained more than 95% in the past year.
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