· Event impact

Lumentum and Applied Materials Outperform Nvidia in 2026

Type: market_structureConfidence: 0.8Verified: keep
The outperformance of AI supply chain and equipment stocks relative to the primary GPU provider suggests investors are rotating into different parts of the value chain to capture growth, potentially signaling a maturing of the initial AI trade.

Transmission path

The outperformance of AI supply chain and equipment stocks relative to the primary GPU provider suggests investors are rotating into different parts of the value chain to capture growth, potentially signaling a maturing of the initial AI trade.

Market mechanism

The outperformance of AI supply chain and equipment stocks relative to the primary GPU provider suggests investors are rotating into different parts of the value chain to capture growth, potentially signaling a maturing of the initial AI trade.

Extended read

While Nvidia has been the primary focus of the AI investment theme, other companies in the ecosystem have delivered even stronger stock performance in 2026. A recent report highlights that Lumentum Holdings and Applied Materials have gained 121% and 67% respectively year-to-date, outperforming Nvidia. This performance points to the market's growing appreciation for the broader AI infrastructure buildout. Lumentum, which supplies optical components essential for high-speed data transfer within and between data centers, reported a 72% increase in revenue. Applied Materials benefits from the capital expenditures required to build new, advanced semiconductor fabrication plants. This trend suggests a rotation into picks-and-shovels plays that support the AI gold rush.

Exposed assets

LITE · AMAT · NVDA

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