Artisan Trims Coherent Position After 226.9% Year Gain on AI Demand
Artisan Mid Cap Fund trimmed its Coherent Corp position in Q4 2025 despite solid earnings that exceeded expectations, as management cited robust AI-driven data center demand, improving margins and confidence in its indium phosphide platform. Coherent shares closed at $248.89 on February 23, 2026, rising 16.3% over one month and 226.9% over twelve months with a $46.66 billion market cap.
1. Artisan Mid Cap Fund Highlights Coherent
In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund named Coherent Corp a top contributor, noting strong demand for its photonics solutions. The fund acknowledged valuation near the upper end of its assessed range and trimmed the position while maintaining conviction in the longer-term growth outlook.
2. Q4 Earnings and Growth Drivers
Coherent’s recent quarterly results surpassed analyst forecasts, driven by high-speed optical component sales supporting AI-driven data center expansion. Management emphasized improving gross margins and highlighted the vertically integrated indium phosphide platform as a key supply chain differentiator amid industry capacity constraints.
3. Stock Performance and Valuation
On February 23, 2026, Coherent shares closed at $248.89, marking a 16.3% increase over the past month and a 226.9% gain year-over-year. The company’s market capitalization reached $46.66 billion, reflecting investor confidence in its AI and communications market positioning.
4. Hedge Fund Ownership Trends
Coherent’s presence among institutional investors grew as 107 hedge funds held shares at the end of Q4 2025, up from 78 in the prior quarter. Despite not appearing on the list of the 30 most popular hedge fund stocks, rising ownership underscores growing interest in its photonics and laser systems business.