Forget Oil. These 3 AI Stocks Will Make Millionaires By 2029

Ticker Symbol: YOU•Mar 29, 2026

Summary

Alex posits that the AI market is moving past GPU and memory constraints into a networking-centric bottleneck phase. He explains that Google DeepMind's 'Turbo Quant' technology reduces KV cache by 80%, forcing networks to handle much higher token outputs. This necessitates a transition to optical networking, which uses light and glass fibers to achieve bandwidths of up to 1.6 terabits per second, far surpassing traditional copper capabilities.

Lumentum (LITE) is highlighted as a leader in laser components and optical switches, reporting a 65% year-over-year revenue increase. Alex notes that the company has secured a multi-year agreement with Nvidia, which includes a $2 billion investment and purchase commitment. He emphasizes their path toward reaching $2 billion in quarterly revenue within the next two years as they ramp up a new US-based fabrication facility.

Coherent (COHR) is presented as a vertically integrated powerhouse that manufactures everything from 6-inch indium phosphide wafers to complete high-speed transceivers. Alex points out that their order backlog is growing four times faster than their current shipments, signaling overwhelming demand. He identifies Coherent as his top pick among the three due to its manufacturing moat and a similar $2 billion strategic partnership with Nvidia.

Ciena (CIEN) operates at the systems level, packaging optical components into full networks for hyperscale cloud providers. The company maintains a record $7 billion backlog and has seen its cloud-related revenue grow by 76% year-over-year. Alex views Ciena as a more diversified investment that benefits regardless of which specific component manufacturer leads the market.

Mentioned Stocks

LITE

Sentiment: BUYAction: RECOMMENDED

Reasoning: Lumentum is a leading supplier of lasers and switches for AI data centers with 65% YoY revenue growth. They have a $2 billion partnership with Nvidia that de-risks their roadmap and supports a path to $2 billion in quarterly revenue within two years.

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COHR

Sentiment: BUYAction: RECOMMENDED

Reasoning: Alex identifies this as his top pick because of its vertical integration and 6-inch wafer process which cuts costs by 60%. The company has a book-to-bill ratio of 4:1 and a $2 billion investment/purchase agreement from Nvidia.

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CIEN

Sentiment: BUYAction: RECOMMENDED

Reasoning: Ciena offers a diversified way to play the optical buildout at a systems level with a massive $7 billion backlog. Their revenue from cloud providers is growing at 76% YoY, showing a strong shift toward AI-driven demand.

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VMET

Sentiment: BUYAction: RECOMMENDED

Reasoning: As a royalty company, it offers diversified exposure to gold, silver, and copper without the operational risks of mining. They are guiding for significant production growth to 20,000 gold equivalent ounces in 2026.

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