Nvidia invests $2 billion in Coherent to enhance optical technologies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Source: Newsfilter
Coherent Corp. shares fell 5.01% and hit a 5-day low amid a strong market rally, with the Nasdaq-100 up 1.51% and the S&P 500 up 1.39%.
The decline in Coherent's stock is attributed to sector rotation, as Nvidia announced a $2 billion investment in optical interconnects and silicon photonics, which could enhance its capabilities but also indicates a shift in investor focus towards companies directly benefiting from AI infrastructure advancements. This news highlights the competitive landscape in the optical technology sector, where Coherent is a key player.
The implications of Nvidia's investment suggest that while Coherent remains a significant entity in the optical networking space, the immediate market sentiment is favoring companies that are more directly aligned with the rapid growth in AI technologies.
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Analyst Views on COHR
Wall Street analysts forecast COHR stock price to fall
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 335.700
Low
170.00
Averages
238.18
High
300.00
Current: 335.700
Low
170.00
Averages
238.18
High
300.00
About COHR
Coherent Corp. is a vertically integrated manufacturing company that develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in the communications, industrial, instrumentation and electronics markets. Its segments include datacenter & communications, and industrial. Its datacenter & communications segment offers optical transceivers, optical circuit switches, interconnect cables, optical instruments, optoelectronic devices, communication components, and wavelength management products. Its industrial segment offers lasers, machines & systems, components & accessories, optics, laser measurement instruments, ceramics & metal matrix, ion implantation, engineered materials, and wide-bandgap electronics. Its subsidiaries include Finisar Australia Pty Limited, Nufibre PTY LTD, Finisar Brasil Suporte De Vendas LTDA, Coherent Aerospace & Defense, Inc., and Coherent Asia, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capacity Expansion Plans: AXT plans to expand production capacity at its Beijing facility between 2026 and 2028 to meet Coherent's demands, a move that not only enhances the company's production capabilities but also prepares for future market demand growth.
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See More
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