· Event impact
AI Infrastructure Stocks Lumentum, Applied Materials Outperform Nvidia
Transmission path
The outperformance of key suppliers in the AI value chain highlights the broadening of the investment theme beyond just the primary chip designers to include critical component and equipment manufacturers.
Market mechanism
The outperformance of key suppliers in the AI value chain highlights the broadening of the investment theme beyond just the primary chip designers to include critical component and equipment manufacturers.
Extended read
While Nvidia has dominated headlines, other critical players in the AI infrastructure buildout have delivered even stronger stock performance in 2026. Lumentum Holdings, a maker of optical components, has seen its stock rise 121% year-to-date, while semiconductor equipment giant Applied Materials is up 67%. Lumentum's success is driven by a 72% increase in revenue, as its components are essential for the high-speed networking required inside and between AI data centers. Applied Materials benefits from the massive capital expenditures by foundries like TSMC to build new fabs capable of producing next-generation AI chips. This trend demonstrates a market that is increasingly looking for ways to get exposure to the AI theme beyond the most prominent names.
Exposed assets
LITE · AMAT · AVGO
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