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Coherent Corp. (COHR), a $29 billion leader in laser technologies, is projected to double its revenues from $3.3 billion in June 2022 to $6.7 billion by June 2026, as demand for optical solutions surges alongside the growth of AI and data centers. The company’s stock has appreciated 290% in the same timeframe, with profits expected to rise by 42% in the current fiscal year to exceed $5 EPS.
A significant contributor to this growth is Coherent’s collaboration with NVIDIA announced in March 2023, focusing on developing silicon photonics networking switches using co-packaged optics, aimed at enhancing data connectivity in AI environments. Additionally, Coherent has entered a multiyear agreement with Apple (AAPL) to produce vertical-cavity surface-emitting lasers (VCSELs) essential for features like Face ID in iPhones and iPads, further strengthening their market position.
Coherent’s manufacturing facility in Sherman, Texas, employs advanced semiconductor fabrication techniques for future optoelectronic applications. The company is also divesting its Aerospace and Defense business, selling it to Advent for $400 million, to focus on expanding their optical technologies.
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