COHR
Nvidia just bought a $2B stake in Coherent to aggressively fund optical supply chain expansion and feed overwhelming AI component demand.
An intermediate 2.4T step delays 400G-lane optics and extends the 1.6T supercycle, compounding Coherent's already-ramping transceiver volumes.
GlassBridge demo specs fall short of real CPO demands; Coherent is the verified silicon photonics winner with NVIDIA locked in through 2030.
Optics and transceiver companies crushing it on AI buildout
Coherent gets real incremental free-space optics and EDFA wins, but not transformative at corporate scale
COHR's 6-inch InP ramp is ahead of schedule with booked-out order slots through 2028 and an NVIDIA supply deal through 2030, making supply execution the sole lever on revenue.
Optical laser and transceiver makers are the unavoidable common layer for memory disaggregation regardless of which optical path wins.
China's InP export freeze widens Coherent's moat as it self-supplies 6-inch wafers, with order book stretching to 2028
AI datacenter CPO buildout is pulling optical component makers into a multi-year supply squeeze, with Coherent doubling output and still running short.
AI cluster optics demand is compounding faster than any prior HPC cycle, and Coherent is the vertically integrated photonics manufacturer with an order book already stretching to 2028.
Coherent doubling InP output ahead of plan, datacomm revenue up 40%, integrating the bottleneck in-house
Co-packaged optics is the binding AI interconnect bottleneck, and the vertical optics supplier captures the spend.
China's InP chokepoint plus AI optics demand makes Western indium phosphide scarce; Coherent's domestic ramp wins.
Coherent's AI optics cycle is already big, order book stretching to 2028 as datacom becomes 3/4 of it.
Coherent is ramping bigger 6-inch wafers to make laser chips much cheaper and faster, which should lift its profit margins.