MSCI World Adds Coherent ($1.69B Q2), AST SpaceMobile, FTAI Aviation
MSCI World Index will add Coherent, AST SpaceMobile and FTAI Aviation on Feb. 27, triggering passive funds to allocate billions into these stocks. Coherent posted record $1.69 billion Q2 revenue, highlighting AI infrastructure growth that could marginally shift ETF flows from NVIDIA GPUs.
1. MSCI World Index Rebalance
On Feb. 10 MSCI completed its quarterly index review and will add Coherent, AST SpaceMobile and FTAI Aviation effective Feb. 27. Passive mutual funds and ETFs tracking the MSCI World Index must buy these stocks by the close on implementation date, creating an estimated multibillion-dollar buying wave.
2. Coherent's Record Q2 Performance
Coherent reported $1.69 billion in Q2 revenue driven by deployment of 800G and 1.6T optical transceivers for hyperscale AI data centers. The company has improved profit margins through divestiture of non-core assets and now serves as critical data-link infrastructure alongside GPU processors.
3. Implications for NVIDIA
Index inclusion diversifies AI infrastructure exposure beyond GPU makers and could marginally shift ETF inflows away from NVIDIA. As passive funds rebalance, NVIDIA’s share of MSCI World–linked assets may contract slightly, although underlying GPU demand remains strong.