NVIDIA Corporation (NVDA) is Investing $2 billion in Lumentum and Coherent, Reports WSJ

NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Automation Stocks to Buy According to Analysts.

On March 3, WSJ reported that NVIDIA Corporation (NASDAQ:NVDA) is investing $2 billion in both Lumentum and Coherent. The investment forms part of the agreements to aid in ramping up the advanced optics technologies for broader AI infrastructure. Each of the agreements consists of the multibillion-dollar purchase commitment from NVIDIA Corporation (NASDAQ:NVDA) as well as future capacity access rights for the advanced laser products.

Furthermore, WSJ also noted that these investments are expected to help in R&D, and future capacity and operations, while the 2 companies establish the US manufacturing capabilities.

In a separate release, Tigress Financial lifted its price objective on NVIDIA Corporation (NASDAQ:NVDA)'s stock to $360 from $350, while keeping a "Strong Buy" rating, as reported by The Fly. As per the firm, NVIDIA Corporation (NASDAQ:NVDA)'s strong market presence in the broader AI data center infrastructure has resulted in healthy growth in revenue, cash flow, and profitability.

We recently covered that Baird raised its PT on NVIDIA Corporation (NASDAQ:NVDA), you can read that update here.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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