Coherent's Margin Expansion is a Metric Investors Should Watch
COHR's expanding margins and rising factory efficiency show how AI-driven demand is translating into stronger profits and earnings growth.
COHR's expanding margins and rising factory efficiency show how AI-driven demand is translating into stronger profits and earnings growth.
Luke Lango highlights AI's toll roads
AI hardware and optical-communication gains helped steady major U.S. indexes after war-driven swings, today, July 9, 2026.
COHR's AI-driven datacenter demand, record backlog and stronger balance sheet support its growth case despite a premium valuation.
The recent AI infrastructure selloff reflected sentiment and valuation reset, while Coherent (COHR) maintained record backlog visibility extending through 2028. Six-inch indium phosphide expansion strengthens Coherent's manufacturing moat as demand visibility, margins and production capacity continue improving simultaneously. The company is positioned across transceivers, Optical Circuit Switching, Co-Packaged Optics and thermal technologies, creating multiple overlapping long-term growth drivers.
Prominent AI investor Gavin Baker believes that the current hardware cycle is fundamentally different from past tech bubbles.
One of the new congestion points in AI is the speed at which data can be transferred. Nvidia has been aggressively investing in companies that could offer a solution.
Shares of high-flying photonics names are sliding at midday Thursday. Applied Optoelectronics (NASDAQ:AAOI) stock is down 17% to $114.93, the biggest decliner in the group and easily the sharpest single-session drop of the three.
Here is how Coherent (COHR) and Enpro (NPO) have performed compared to their sector so far this year.
Finding stocks expected to beat quarterly earnings estimates becomes an easier task with our Zacks Earnings ESP.
Artificial intelligence has no shortage of obstacles. The industry is scrambling to secure enough electricity to power new data centers, enough land to build them, and enough high-bandwidth memory (HBM) to keep next-generation chips fed with data. Yet another constraint is emerging that could prove just as important: moving information between those chips fast enough... These 7 Stocks Will Solve AI's Most Important Bottleneck
Agentic AI is turning software into labor, driving a surge in inference demand across chips, memory, networking, power, and storage.
The first wave of AI investing focused on companies building powerful processors. But as AI systems become larger, a different challenge is emerging: moving massive amounts of data between those processors.
Optical stocks have emerged as a bountiful play on the artificial-intelligence trade, but Friday's selloff is putting a damper on that momentum.
Coherent Corp. has surged 196% since my last coverage, significantly outperforming the benchmark. I remain bullish on COHR due to its essential high-speed connectivity solutions for data centers and persistent demand. COHR benefits from multiple long-term tailwinds, supporting expectations for robust top and bottom-line growth.
Palantir's rapid growth, strong profitability, and expanding AI adoption are helping it stand out from Coherent as a long-term AI investment.
Shares of optical and photonics suppliers are tumbling at midday Tuesday, with Applied Optoelectronics (NASDAQ:AAOI) stock leading the decline, down 13% to $149.
Coherent's record backlog, long-term commitments, NVIDIA investment and deleveraged balance sheet are reshaping its AI-era growth profile.
Coherent's optical upgrades are essential for handling AI applications. Its stock is richly valued, but it has significant upside potential.
Tower's advanced silicon photonics platform enables high-bandwidth, energy-efficient data center connectivity