VRT, LITE, COHR, SATS Set To Join S&P 500 As 'Physical AI' Trade Gains Momentum

• Vertiv plays a critical role in managing heat and power as AI-driven data centers grow more energy-intensive.
• Lumentum and Coherent enable faster data transfer through advanced optical and laser technologies, overcoming the limitations of traditional wiring.
• In early March, Nvidia invested $2 billion each in Lumentum and Coherent to advance AI-focused optical technologies.

The S&P 500 index is set to undergo a notable shift on Monday, signaling a broader change in how markets value the artificial intelligence boom as Dow Jones Indices adds Vertiv Holdings (VRT), Lumentum Holdings (LITE), Coherent (COHR), and EchoStar (SATS) to its benchmark lineup. 

Instead of focusing solely on software innovators, the index is turning to companies that provide the physical infrastructure needed to sustain rapid AI expansion.

AI Infrastructure Takes Center Stage

The latest additions reflect a broader realization that advanced AI systems depend heavily on real-world systems such as energy management, cooling solutions and high-speed data transmission.

After years of enthusiasm around algorithm development, investors are now prioritizing the underlying systems that enable those technologies to operate at scale.

Vertiv, known for thermal management and power solutions, has become essential as data centers face rising heat loads from increasingly powerful AI chips. Its technology helps prevent system failures and ensures consistent performance in high-density computing environments.

Vertiv stock traded 3% lower in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

VRT stock has gained 57% year to date. Vertiv forecasts 2026 revenue of $13.25 billion to $13.75 billion, pointing to organic growth of roughly 27% to 29%. The company anticipates adjusted diluted EPS to range from $5.97 to $6.07. By comparison, analysts tracked by Koyfin estimate revenue at $12.39 billion and EPS at $5.33.

Photonics Firms Gain Momentum

Both Lumentum and Coherent are being recognized for their work in optical networking and laser-based systems. As traditional wiring struggles to keep up with escalating data demands, these firms provide optical infrastructure that enables faster, more efficient communication between computing systems.

In early March, Nvidia Corp. (NVDA) entered long-term agreements with Lumentum and Coherent, investing $2 billion in each company to develop optical technologies essential for future AI systems.

The partnerships center on joint research, production, and innovation efforts to strengthen large-scale AI infrastructure. 

LITE and COHR has gained over 91% and 37%, respectively, year-to-date. 

EchoStar adds another dimension by extending connectivity beyond terrestrial networks. Its satellite and wireless technologies enable communication in remote or hard-to-reach areas, supporting applications ranging from autonomous systems to global data access.

SATS has gained over 1% year-to-date. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.8%.

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