Coherent Stock Rockets 17.6% after Nvidia CEO Spotlights Optical Networking
IPGP•Coherent surged 17.6% to a 52-week high after Nvidia’s CEO highlighted optical networking demand for AI data centers. Underlying the rally, revenue grew 18% year-over-year with net margins reaching 7.1%, and Q4 guidance points to 29% revenue growth as data center demand outpaces supply.
1. Nvidia CEO Comment Sparks Rally
A single remark by Nvidia CEO Jensen Huang on optical networking demand sent Coherent shares up 17.6% to a 52-week high of $426.89, highlighting investor focus on AI data center infrastructure.
2. Operational Turnaround Drives Profitability
Over the past year, Coherent achieved 18% revenue growth compared to a three-year average of 11.5%, while net margin expanded to 7.1%, a peak versus a three-year average of negative 0.4%.
3. Accelerating Guidance and Capacity Concerns
Leadership raised Q4 revenue growth guidance to 29% as data center demand outpaces supply, raising questions about Coherent’s capacity to scale optical component production for AI workloads.
