Coherent Corp. (COHR) has entered a multiyear strategic agreement with NVIDIA (NVDA) to develop advanced optical technologies as of March 2, 2026. The deal includes a non-exclusive contract and a commitment from NVIDIA for multibillion-dollar purchases, significantly boosting COHR’s manufacturing capacity and R&D.
As part of this agreement, NVIDIA is set to invest $2 billion into Coherent’s U.S. manufacturing capabilities, aiming to create advanced optical networking products beneficial for AI and data center infrastructures. Coherent’s share price has surged 241.4% over the past year, outpacing a 12.6% industry average increase.
Coherent currently trades at a forward price-to-earnings ratio of 35.74X, significantly higher than the industry average of 20.86X. The investment from NVIDIA is expected to solidify COHR’s position as a key player in the AI sector and enhance its production capacity.
