Nvidia to invest $2 billion in Coherent U.S. photonic R&D and manufacturing
Nvidia will invest $2 billion in photonic product maker Coherent to support the company’s U.S.-based research and manufacturing operations. Coherent shares jumped over 7% in premarket trading following the announcement.
1. Investment Details
Nvidia will invest $2 billion in Coherent to bolster its U.S. photonic research and manufacturing capabilities. The funding supports expansion of production lines and advanced development of photonic components critical for data centers and AI applications.
2. Market Reaction and Outlook
Coherent's shares rose over 7% in premarket trading on the announcement, reflecting investor confidence in stronger cash flows and technological leadership. The investment positions Coherent to accelerate product rollouts and scale U.S.-based operations to meet growing demand.