Coherent makes lasers, optical components and connectivity modules used in data networks.
Analysis
It was the top weekly gainer in the S&P 500, ahead of Lumentum, Synopsys and Carnival. It offers a different expression of the AI theme: instead of processors, the optical connectivity that links thousands of machines together.
Opportunity
The opportunity is rising data speeds in data centres, which makes optics indispensable. The risk is the volatility of a stock that has run hard and demanding valuation.
Investor outlook
Positive outlook. The signal is that AI infrastructure is spreading deeper into the supply chain. Watch it as a rotation theme.
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