Coherent is up in Thursday trading as the market continues to re-rate the company around two AI-adjacent growth pillars: (1) high-speed optical components used in AI datacenter interconnects and (2) silicon-carbide materials/epitaxy aimed at next-generation high-voltage power electronics. Recent attention has centered on Coherent’s stated advances in thick SiC epitaxy for devices reaching the 10 kV class, which traders are treating as a differentiator in wide-bandgap semiconductors and a potential pathway to higher-value content per wafer.

The latest driver behind the bid has been the “SiC breakthrough” storyline—Coherent’s progress on thick epitaxial wafers designed to support very-high-voltage SiC devices—feeding into a broader AI-infrastructure rally that rewards suppliers positioned for electrification, power conversion, and datacenter buildouts. At the same time, the stock continues to carry a halo from its strategic relationship with Nvidia, which has been framed publicly as including a large equity investment and a broader collaboration/purchase commitment narrative, reinforcing investor expectations for sustained demand visibility.

Key swing factors now are (a) whether Coherent converts SiC technology momentum into qualified, repeatable volume ramps and durable margin expansion, and (b) any incremental optical/datacom order commentary that validates 800G/1.6T and next-wave interconnect demand. The next major scheduled fundamental checkpoint is the company’s upcoming earnings report date on May 13, 2026, where updated guidance and segment detail could either extend the rally or trigger volatility if expectations are already priced in.