Coherent to Build Silicon Photonics CPO Switches with NVIDIA for AI
Coherent announced a March 2025 collaboration with NVIDIA to develop silicon photonics networking switches using co-packaged optics, aiming to connect millions of GPUs in AI datacenters. Investor enthusiasm propelled COHR shares from below $70 to over $190 this year on expectations of optical interconnect growth.
1. NVIDIA Collaboration Announcement
In March 2025, Coherent forged a strategic agreement with NVIDIA to co-develop silicon photonics networking switches leveraging co-packaged optics (CPO), targeting high-speed, low-latency connections across AI GPU clusters.
2. Share Price Performance
Following the partnership announcement, COHR shares surged from under $70 in early 2025 to surpass $190, reflecting market optimism around optical interconnect demand and next-generation datacenter architectures.
3. Co-Packaged Optics Advantage
Coherent’s CPO technology integrates optical components directly within chip packages, reducing power consumption by over 3x and enhancing signal integrity compared to traditional copper and pluggable solutions.
4. AI Datacenter Market Potential
The collaboration addresses NVIDIA’s need for scalable GPU interconnects, positioning Coherent to tap into expanding AI datacenter investments projected to connect millions of GPUs across rack-scale systems.