The technology services industry remains strong amidst a global shift toward digitization, with companies increasingly adopting AI technologies. However, by 2026, growth has stalled due to macroeconomic and geopolitical tensions. Analysts have identified Coherent Corp. (COHR) and Cerebras Systems Inc. (CBRS) as favorable investments, both boasting a Zacks Rank #2 (Buy).
Coherent Corp. anticipates first-quarter fiscal 2027 revenues between $2.2 billion and $2.4 billion, marking a 45.6% increase from the previous year. Their partnership with NVIDIA involves a $2 billion investment, enhancing optical technology for AI data centers. Meanwhile, Cerebras Systems reported second-quarter 2026 core revenues of $209.9 million, up 103% year-over-year, and is expecting core revenue guidance of $880-$890 million for the full year.
Brokerage firms project a 29% price increase for COHR from its last closing price of $321.52, with a target range of $280-$500. For CBRS, the average price target indicates a 38.5% potential rise from its closing price of $208.49, with targets between $209 and $330.
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