Nvidia invests as Kandou AI raises $225 million

Key Takeaways

• Vertiv Holdings, Lumentum Holdings, Coherent, and EchoStar joined the S&P 500, emphasizing the growing importance of physical AI infrastructure.
• Nvidia has invested in Lumentum and Coherent to advance AI optical technologies.
• A $1,000 investment in Nvidia 10 years ago grew to approximately $218,000 by March 20, 2026.
• Banzai International is acquiring ConnectAndSell, a deal expected to add about $15 million to Banzai's annual revenue and more than double its total revenue.
• Kandou AI secured $225 million in funding, including from SoftBank, for high-performance AI chip infrastructure.
• Marvell Technology launched new 260-lane PCIe 6.0 and CXL 3.0 switches for AI data center connectivity and declared a $0.06 per share quarterly dividend.
• Off The Hook YS Inc. launched NextBoat AI for boat transactions, announced a $1 million share repurchase program, and expects 2026 revenue between $140 million and $145 million.
• The CBOE Volatility Index (VIX) rose to 24, indicating market uncertainty that could lead to short-term dips in AI stocks.
• Bank of America believes AI investment will not significantly impact near-term monetary policy decisions.
• A TE Connectivity survey found over 80% of industrial tech companies use AI, prioritizing return on investment over innovation.

Four companies join S&P 500 as physical AI infrastructure gains importance

Vertiv Holdings, Lumentum Holdings, Coherent, and EchoStar are joining the S&P 500 index. This change highlights the growing importance of physical infrastructure for artificial intelligence. Companies like Vertiv provide essential power and cooling for AI data centers. Lumentum and Coherent offer advanced optical and laser technologies for faster data transfer. Nvidia has invested in Lumentum and Coherent to boost AI optical tech. EchoStar's inclusion shows AI's expanding reach beyond traditional data centers.

AI stocks like Lumentum and Vertiv shine in early 2026

While many AI stocks have struggled in early 2026, optical networking companies like Lumentum Holdings (LITE) and Ciena (CIEN), along with data center firm Vertiv Holdings (VRT), have shown strong performance. These companies provide key infrastructure for the growing AI sector. Despite some bellwether AI stocks like Nvidia disappointing investors, these specific companies are emerging as bright spots in the market.

S&P 500 adds Vertiv, Lumentum, Coherent, EchoStar amid 'physical AI' trend

The S&P 500 index is adding Vertiv Holdings, Lumentum Holdings, Coherent, and EchoStar, reflecting a growing focus on the physical infrastructure behind AI. Vertiv provides crucial power and cooling for data centers, while Lumentum and Coherent enhance data transfer with optical and laser tech. Nvidia has invested in Lumentum and Coherent to advance AI optical technologies. EchoStar's inclusion suggests AI's reach is expanding. This shift emphasizes the tangible components powering the AI revolution.

Market fear gauge spikes, history suggests AI stocks may dip then rebound

The CBOE Volatility Index (VIX), a measure of market fear, has risen to 24, indicating investor uncertainty. This rise often precedes a decline in the S&P 500, which heavily influences AI stocks. While AI stocks have led market gains, concerns about spending justification and geopolitical issues are causing volatility. Historically, periods of high VIX have led to market dips, but the S&P 500 has always recovered, suggesting AI stocks may present buying opportunities after a potential short-term decline.

Nvidia stock grew $1,000 investment to $218,000 in 10 years

Nvidia's strong position in providing graphics processing units (GPUs) for artificial intelligence has led to massive returns for shareholders. A $1,000 investment in Nvidia stock 10 years ago would have grown to approximately $218,000 by March 20, 2026. This growth is primarily due to the company's fundamental performance, driven by the ongoing AI trend. Nvidia's future success heavily relies on the continued expansion of AI investments.

Banzai International to buy ConnectAndSell, boosting AI sales tools

Banzai International plans to acquire ConnectAndSell, a company that uses AI to improve sales efforts. This deal, expected to close in early Q2 2026, is projected to add about $15 million to Banzai's annual revenue. The acquisition will enhance Banzai's marketing and sales software, making sales teams more productive and increasing interactions with key decision-makers. Banzai believes this move will create new sales opportunities and strengthen its position in the market.

Banzai acquires ConnectAndSell, doubling revenue and expanding AI platform

Banzai has agreed to acquire ConnectAndSell, a company known for its AI-powered sales acceleration platform. This acquisition is expected to more than double Banzai's annual revenue and significantly expand its AI platform capabilities. ConnectAndSell helps sales teams engage more effectively with decision-makers. The deal is anticipated to close in Q2 2026 and will create cross-selling opportunities for both companies, strengthening Banzai's position in the revenue-generating software market.

Marvell Technology launches new AI connectivity tech and declares dividend

Marvell Technology has introduced new 260-lane PCIe 6.0 and CXL 3.0 switches to enhance AI data center connectivity. The company also declared a quarterly dividend of $0.06 per share. These new products aim to address the growing bandwidth and memory needs of AI data centers by enabling rack-level memory pooling. While these advancements strengthen Marvell's position in the AI infrastructure market, its revenue remains dependent on a few major cloud customers.

Bank of America: AI investment won't sway near-term monetary policy

Bank of America (BofA) believes that despite increased investment in artificial intelligence, it will not significantly impact central bank decisions in the near future. While AI is contributing to economic growth and is slightly inflationary through energy costs and wealth effects, these impacts are not strong enough to alter current monetary policy. BofA notes that AI adoption is still limited, and major productivity gains have not yet occurred. Central banks will likely focus on more immediate economic factors until AI's effects become more widespread.

Kandou AI raises $225 million for AI chip infrastructure

Kandou AI, an artificial intelligence chip company led by a former Goldman Sachs banker, has secured $225 million in funding from investors including SoftBank Group Corp. The company focuses on producing high-performance connectivity chips to help build AI data centers more affordably. Kandou AI aims to improve how GPUs connect within data centers, addressing a key bottleneck in AI model training. They are exploring using copper connections instead of more expensive fiber optics to lower costs.

Off The Hook YS launches AI platform for boat purchases

Off The Hook YS Inc. (OTH) is launching NextBoat AI, a new platform that uses artificial intelligence to optimize the buying and selling of pre-owned boats. This industry-first tool will debut at the Palm Beach International Boat Show. OTH, a major buyer and seller of pre-owned boats, uses AI-assisted valuation and a data-driven sales platform to improve transaction speed and transparency. The company also announced a $1 million share repurchase program and expects 2026 revenue between $140 million and $145 million.

Companies prioritize AI ROI over innovation, TE Connectivity survey finds

A global survey by TE Connectivity reveals that over 80% of industrial technology companies have adopted AI tools, and now prioritize return on investment (ROI) over innovation. For the first time in four years, financial returns became the top priority for both executives and engineers, surpassing product innovation. The survey also shows AI adoption is increasing, especially in the U.S., with companies needing better alignment between engineers and executives to translate AI investments into tangible results.

Binance teases new AI Pro trading tool for users

Binance has teased a new tool called 'AI Pro,' which is expected to enhance its artificial intelligence offerings for traders. This new tool is anticipated to combine AI-powered trading, analysis, and wallet functions. As the largest crypto exchange, Binance's move into advanced AI tools signals a growing trend in the crypto space. AI Pro could offer millions of users more in-depth and prompt information for trading, potentially giving Binance a significant advantage over competitors.

Sources

• VRT, LITE, COHR, SATS Set To Join S&P 500 As 'Physical AI' Trade Gains Momentum
• AI Stocks To Watch: Cybersecurity's RSA On Tap, 'Death Cross' In The Making?
• VRT, LITE, COHR, SATS set to join S&P 500 as 'physical AI' trade gains momentum
• The Market's Fear Gauge Just Spiked to 24. History Says This Is What Happens Next for Artificial Intelligence (AI) Stocks.
• If You'd Invested $1,000 in Nvidia Stock 10 Years Ago, Here's How Much You'd Have Today
• Banzai International, Inc. to Acquire ConnectAndSell, Expanding AI Sales Acceleration Capabilities and Expected Revenue Growth
• Banzai Reaches Deal to Acquire Assets of ConnectAndSell, a Profitable Company, More Than Doubling Annual Revenue and Expanding AI Platform Capabilities
• Is Marvell’s New AI Connectivity Push And Dividend Policy Altering The Investment Case For MRVL?
• Why BofA says AI is not a big factor in near-term monetary policy
• Ex-Goldman Banker’s AI Chip Company Secures SoftBank Funding
• Industry-First AI Platform to Optimize Boat Purchase Options Using Proprietary Market Data for Expanding Pre-O
• TE Connectivity survey: Return on investment becomes top priority as AI age evolves
• Binance Teases “AI Pro” Tool, Hinting at Next-Gen Trading Power for Millions