J P M O R G A N North America Equity Research 18 March 2026 Hardware & Networking OFC Insights: CIEN, CSCO, COHR, FN, & LITE Meeting Takeaways The second day of the Optical Fiber Communication (OFC) Conference had us attending presentations and discussion sessions with Ciena, Cisco, Coherent, Fabrinet, and Lumentum, all of which served to highlight a combination of new growth opportunities being actively pursued across the group as well as continued robust growth in existing product lines, setting the secto ...

中金研究 我们参加了于3月17日-19日在美国洛杉矶举行的OFC 2026大会。作为全球光通信行业风向标之一，根据官网，本届大会汇聚超1.6万名参会人和700余 家参展企业，海内外科技企业同台竞技，纷纷展出光通信领域前沿技术与成果。从本次OFC大会中，我们感受到在位厂商对AI大周期的信心，建议关 注Scale up CPO/NPO、Scale across、OCS等光通信行业发展趋势。 点击小程序查看报告原文 Abstract 摘要 Scale up CPO趋势明确， NPO方案有 望率先放量。 CPO是本次OFC焦点话题之一。中国企业在FAU、ELS模块、OE光引擎封装等环节表现出产业引领地 位；日美企业在光芯片、连接插芯等环节展出更多创新方案。我们认为，尽管CPO在实现大规模商用上仍面临难题，但在scale up场景中，由于对 beachfront density和单位带宽功耗的要求明显高于scale out，CPO的意义更加突出、确切，产业共识认同CPO将在scale up增量场景中明确放量，我们预计 有望在2H27-2028放量。得益于NPO在维护成本、可靠性、产业链复制等方面的优势，我们判断2027 ...

Tower Semiconductor stock is among today’s top performers. What’s fueling TSEM momentum?Tower, Coherent Demonstrate 400 Gbps Per Lane Silicon Photonics BreakthroughThe companies said they successfully demonstrated 400 Gbps per lane data transmission using a silicon modulator built in a production-ready silicon photonics, or SiPho, process. According to the announcement, the demonstration showed a clear open eye at 420 Gb/s PAM4 and used Coherent's InP CW high-power laser. Tower said the achievement is aimed ...

Key Takeaways Coherent derives 70% revenues from Datacenter & Communications, riding the AI demand with strong growth.Palantir leverages Foundry, Gotham and AIP to drive AI adoption across government and industries.COHR projects faster 2026 growth and trades cheaper, while PLTR faces rising competition pressure.Both Coherent Corp. (COHR) and Palantir Technologies Inc. (PLTR) are vital players in the AI space. While Coherent operates in the AI hardware infrastructure domain, Palantir prevails in the AI softw ...

The demonstration uses a silicon MZM without use of exotic materials targeting next-generation 3.2T optical transceivers MIGDAL HAEMEK, Israel, March 23, 2026 - Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions and Coherent Corp. (NYSE: COHR), a global leader in photonics, today announced a breakthrough demonstration of 400 Gbps/lane data transmission using a silicon modulator built in a production-ready silicon photonics (SiPho) process. This achieve ...

Coherent ( COHR ) shares have increased in price by 144% since my August buy recommendation, which is undoubtedly one of my best recommendations over the past year. But since October, I have downgraded the rating toHi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found that behind every financial st ...

Core Insights - Nvidia-backed stocks Coherent and Lumentum have received positive attention from Wall Street analysts, leading to significant price increases for both companies [2][3]. Group 1: Stock Performance - Coherent (COHR) shares increased by 7% and Lumentum (LITE) shares surged over 10% following Bank of America analysts raising their price targets [2]. - Coherent's price target was raised from $250 to $290, while Lumentum's target increased from $600 to $775, both exceeding the average market expectations [3]. - Coherent shares have risen nearly 50% since the beginning of the year, and Lumentum shares have more than doubled in the same timeframe [5]. Group 2: Market Drivers - The analysts' optimism stems from insights gained at the 2026 Optical Fiber Communications conference, where they noted strong growth prospects driven by the AI boom and increased demand for networking hardware [2]. - Both companies are set to join the S&P 500 later this month, which is expected to further enhance their stock performance [4]. Group 3: Recent Developments - Recent gains for both stocks are attributed to a series of positive developments, including multibillion-dollar investments from Nvidia [6].

Core Insights - Coherent is a global leader in photonics and laser technology, essential for data center communications and various industries, including AI [2][9] - The company reported a revenue of $1.69 billion for fiscal 2Q26, marking a 17% year-over-year increase and exceeding forecasts by $50 million [8] - Analyst Sean O'Loughlin views Coherent as well-positioned to benefit from ongoing AI infrastructure spending, particularly in scalable optics [9] Group 1: Company Overview - Coherent offers a diverse product line, including laser and optical subsystems, optical transceivers, and advanced fiber optic lines, crucial for networking and industrial applications [1] - The company's products are integral to the functioning of modern AI systems, enabling efficient data movement between processors and storage [5][6] Group 2: Financial Performance - In fiscal 2Q26, Coherent's non-GAAP earnings per share reached $1.29, a 35% increase from the previous year, surpassing estimates by 8 cents [8] - The stock has a Moderate Buy consensus rating, with a price target of $330, indicating a potential upside of 33% over the next year [9] Group 3: Market Position and Strategy - Coherent's vertical integration and high-margin industrial business model provide a defensive positioning in the market [9] - The company is expected to capitalize on the growing demand for AI infrastructure, particularly in scalable co-packaged optics, representing a significant growth opportunity [9]

Core Insights - The presentation is part of Coherent's 2026 OFC Technology Innovation Briefing, highlighting the company's focus on technology advancements in the data center communications sector [1] - The agenda includes discussions from key executives on various topics related to the company's operations and innovations, indicating a structured approach to sharing information with stakeholders [3] Company Overview - CEO Jim Anderson will provide an overview of the Data Center Communications segment, emphasizing the importance of this area for the company's growth strategy [3] - CTO Julie Eng will discuss the concepts of scale out and scale up, which are critical for understanding the company's operational efficiencies and technological advancements [3] - Dr. Beck Mason, EVP of Semiconductor Devices, will address the topics of lasers and indium phosphide capacity, which are essential components in the semiconductor industry [3] - Chief Marketing Officer Dr. Sanjai Parthasarathi will discuss scaling across, indicating a focus on expanding the company's market reach and operational capabilities [3]

Core Insights - Coherent Corp. is showcasing its Indium Phosphide (InP) innovations at OFC 2026, emphasizing its extensive portfolio of lasers, modulators, photodiodes, and subsystems for next-generation datacenter architectures [1][2] Group 1: InP Technology and Product Offerings - The demand for higher speeds and energy efficiency in AI-driven infrastructure is driving the need for InP technology, which is essential for high-performance optical engines [2] - Coherent's InP-based portfolio includes a 400mW high-power CW laser for co-packaged optics, 200G EML solutions for 1.6T transceivers, and differential EMLs enabling 400G/lane performance for emerging pluggables at 3.2T and beyond [2] - The company is expanding its InP platform with high-speed 200G and 400G photodiodes, nano-Integrated Tunable Laser Assemblies (nITLA), and 800G and 1.6T IQ modulators, forming a comprehensive InP-enabled solution set [2][3] Group 2: Manufacturing and Supply Chain - Coherent is significantly ramping up 6'' InP production across its facilities in Järfälla (Sweden), Sherman (U.S.), and Zürich (Switzerland), ensuring supply continuity and scalability for customers [3] - The company's expanding manufacturing footprint supports the development of next-generation optical architectures [4][5] Group 3: Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [5][6] - Founded in 1971, Coherent operates in over 20 countries and offers a broad technology stack and supply chain resilience to address complex technology challenges [6]