Core Insights - Coherent Corp. has received two prestigious awards at ECOC 2025, recognizing its leadership in optical innovation and commitment to advancing technologies for high-performance AI networks [1][4]. Product Recognition - The Multi-Rail Resource Pooling System won the Optical Transport Award for its advanced optical amplification architecture that enhances C- and L-band throughput while reducing power, space, and hardware needs [2]. - The 400G Differential EML was awarded the Most Innovative Photonic Component Award, being the first in the industry to offer over 100 GHz bandwidth, low reflections, and reduced power consumption for scalable optical transceivers [3]. Company Commitment - The recognition at ECOC 2025 underscores Coherent's position as a leader in optical innovation, reflecting the expertise of its global teams and its dedication to delivering scalable, reliable, and energy-efficient technologies for the future of communications [4]. - Coherent's portfolio demonstrates its extensive capabilities across materials, components, and systems, addressing the growing demands in datacenter, AI, and telecom networks [4]. Company Overview - Coherent is a global leader in photonics, founded in 1971, operating in over 20 countries, and providing a comprehensive technology stack and supply chain resilience to tackle complex technology challenges [5][6].

Market Overview - Diamond Hill Capital reported a rebound in markets after a downturn in early April, with the Russell 3000 Index showing an approximate increase of 11% [1] - Large-cap stocks experienced the highest growth, rising just over 11%, while small-cap and mid-cap stocks gained around 8.5% each [1] - The Select Strategy portfolio returned 7.31% (net) for the quarter, underperforming compared to the Russell 3000 Index's return of 10.99% [1] Company Focus: Coherent Corp. (NYSE:COHR) - Coherent Corp. is highlighted as a significant contributor to the portfolio, benefiting from increased demand for optical transceivers in data centers [3] - The stock of Coherent Corp. saw a one-month return of 22.97% and a 52-week gain of 21.59%, closing at $107.97 per share with a market capitalization of $16.822 billion on September 29, 2025 [2] - Coherent Corp. was held by 66 hedge fund portfolios at the end of Q2 2025, an increase from 61 in the previous quarter [3] Investment Insights - While Coherent Corp. is recognized for its potential, the company suggests that certain AI stocks may offer greater upside potential with less downside risk [3] - The investor letter indicates a focus on undervalued AI stocks that could benefit from Trump-era tariffs and the trend of onshoring [3]

Core Insights - Coherent Corp. will showcase its innovations in next-generation optical communications at ECOC 2025 in Copenhagen, Denmark [1][2] - The company aims to demonstrate its advanced technologies and contributions to thought leadership in the optical networking space [2] Recent Product Announcements - **2D VCSEL Array**: A 1.6T (32x50G) array designed for short-reach AI/ML datacenter interconnects, focusing on low latency and cost efficiency [3] - **100G ZR for Single-Fiber Operation**: The first dual-laser QSFP28 DCO module for single-fiber applications, offering 10x capacity upgrades on existing 10G infrastructure [4] - **400mW CW Laser**: A new laser delivering stable high output and ultra-low noise, designed for co-packaged optics and silicon photonics [5] - **High Precision Glass Molded 2D Lens Array**: Enables wafer-level manufacturing for multi-channel optical transmission, ideal for various applications including AR/VR [6] - **Quad-Channel IC Family**: New ICs for 800G/1.6T pluggables, providing industry-leading performance with lower power consumption [7] - **Wire Grid Polarizer for Datacom Transceivers**: Achieves a 50 dB extinction ratio and 98.5% efficiency, supporting high-speed datacom transceivers [8] Technology and Product Demonstrations - **Scalable Quantum-Safe Network Demo**: A proof-of-concept showcasing a quantum-safe networking solution integrated with high-performance optical transceivers [9][10] - **100G QSFP28-DCO ZR Dual Laser**: Demonstrates a transceiver with up to 300 km reach and 10x capacity gains [11] - **Active Ingress/Egress Latency Control**: Features a module enabling ultra-low latency variation for demanding applications [12] - **External Laser Source Module for CPO**: Integrates high-power lasers for next-generation optical systems [13] - **1.6T 2xFR4 with 6km Reach**: Extends reach from 2-3 km to 6 km, demonstrating excellent bit error rate [14] - **300G/lane Link**: A milestone demonstration towards enabling speeds higher than 200G/lane [15] - **Multi-Rail Technology**: Designed to deliver four times the capacity over existing fiber with efficient growth [16] Test and Measurement - **WaveAnalyzer 200B**: A portable analyzer capable of fast, precise insights into complex networks [17] - **WaveShaper 500B/X**: Offers unmatched flexibility for production testing of optical transceivers [18] Workshops and Market Focus - **Workshop on Modulator Technology**: Discussion on SiPho vs. InP for high-volume transceivers [19] - **Market Focus Sessions**: Topics include the impact of 400G lanes on datacenter markets and advances in optical components [20][21] Company Overview - Coherent is a global leader in photonics, providing technology solutions for datacenters, communications, and industrial markets [22][23]

Group 1 - Coherent Corp. is under investigation by Pomerantz LLP for potential securities fraud or unlawful business practices involving its officers and/or directors [1] - On August 13, 2025, Coherent announced the sale of its Aerospace and Defense business to Advent for $400 million, with proceeds aimed at reducing debt [2] - Following the announcement of the sale, Coherent's stock price dropped by $22.36 per share, a decline of 19.61%, closing at $91.65 per share on August 14, 2025 [2]

Core Insights - Coherent Corp. has launched the first QSFP28 Dual Laser 100G ZR solution, enabling broadband providers to maximize capacity on existing fiber infrastructure [1][4] - This innovation allows operators to utilize coherent optics across various network architectures, enhancing flexibility and scalability [2][3] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [5][6] - The company has been operational since 1971 and has a presence in over 20 countries, offering a comprehensive technology stack and supply chain resilience [6] Product Details - The Dual Laser 100G ZR QSFP-DCO integrates two independently tunable lasers into a compact module, facilitating IP-over-DWDM transmission over a single fiber [3] - This solution is expected to enhance capacity by 10 times on existing 10Gb/s networks while reducing power consumption and overall cost per bit [3][4] Market Impact - The new technology is currently being sampled by key customers and will be generally available in Q4 2025, addressing the increasing demand for bandwidth [4]

Core Insights - Coherent Corp. announced significant upgrades to its Multi-Rail technology platform aimed at enhancing efficiency, scale, and speed for optical transport networks [1] - The new Dynamic Gain Equalizer (DGE) integrates C and L bands in a compact module, doubling transmission bandwidth while reducing footprint by 20% [2] - The Optical Channel Monitoring (OCM) has been improved, halving scan times and supporting up to 32 monitoring points per module, allowing for more efficient network expansion [3] Company Developments - Coherent is leveraging its semiconductor and wavelength-management expertise to set new benchmarks for bandwidth and power efficiency, with in-house manufacturing ensuring reliability [4] - Collaborations with leading network equipment manufacturers are underway to integrate these advancements into transmission systems, with sampling anticipated in late 2026 [4] - A live demonstration of the next-generation Multi-Rail technology will be presented at ECOC 2025, showcasing the company's innovations in optical transport [5] Industry Context - The demand for optical communications is increasing, prompting Coherent to enhance its technology offerings to meet market needs [4] - Coherent positions itself as a leader in the photonics industry, providing essential technology for data centers, communications, and industrial markets [6] - Established in 1971, Coherent operates in over 20 countries, offering a comprehensive technology stack and resilient supply chain to address complex technology challenges [7]

Core Insights - Coherent Corp. has announced the sampling of its new high-power 400 mW continuous-wave lasers aimed at next-generation co-packaged optics and silicon photonics applications [1][3]. Product Specifications - The new lasers deliver stable output power exceeding 400 mW at 55°C, with spectral linewidths below 200 kHz and relative intensity noise (RIN) below -145 dB/Hz [2]. - These lasers are built on Coherent's Buried-Heterostructure Distributed-Feedback laser (BH DFB) platform, showcasing the company's capability in producing high-performance devices [2]. Market Position and Future Plans - The introduction of the 400 mW CW lasers addresses significant challenges in optical interconnects, providing stable high output power and low noise [3]. - Coherent plans to expand its production capacity more than fivefold with a new 6-inch InP fab in Sherman, Texas, to meet the growing global demand for InP lasers [3]. Availability - Engineering samples of the new lasers are currently available to select customers, with volume production and general availability anticipated in Q3 2026 [3]. Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for data centers, communications, and industrial markets [5][6]. - Founded in 1971, the company operates in over 20 countries and offers a comprehensive technology stack and resilient supply chain [6].

Core Insights - Coherent Corp. has announced a breakthrough in short-reach optical interconnect technology with the demonstration of next-generation 2D VCSEL and photodiode (PD) arrays, aimed at addressing the increasing data traffic demands in modern datacenters [1][7] Technology Advancements - The new high-density 2D array architecture (1.6T, 850 nm, 32x50G NRZ) leverages Coherent's proven 100G PAM4 multimode VCSEL and PD platform, facilitating copper link replacement and enhancing parallelism [2] - These arrays are designed for low power consumption, reduced latency, and cost efficiency, supporting the transition to Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO) for AI/ML workloads in hyperscale datacenters [2] Future Developments - Coherent plans to introduce 1060 nm backside-emitting (BSE) flip-chip VCSEL/PD array variants in 2026, expanding its product portfolio for next-generation optical networking [4] - The innovation will be showcased at ECOC 2025 in Copenhagen, Denmark, from September 29 to October 1, 2025 [4] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [5] - Founded in 1971, the company operates in over 20 countries and offers a comprehensive technology stack and supply chain resilience to address complex technology challenges [6]

Core Insights - Coherent Corp. (COHR) and Arm Holdings plc (ARM) are both technology companies focused on advanced hardware and innovation, playing crucial roles in modern computing [1][3] - COHR specializes in photonics and optical components, while ARM is known for its semiconductor IP that powers a significant share of smartphones and AI processors [2] Coherent Corp. (COHR) Summary - COHR experienced a remarkable 51% increase in fiscal 2025 revenue, driven by a 61% surge in its data center business, indicating strong demand in high-growth technology sectors [4] - The company is advancing its product offerings with the introduction of 1.6T transceivers and is developing next-generation 3.2T transceivers to meet the needs of hyperscale data centers [5] - COHR has tripled its indium phosphide production capacity year over year and launched the world's first 6-inch indium phosphide production line, enhancing cost efficiency and product volume [6] - The company is also entering the optical circuit switch (OCS) market, which is expected to accelerate growth as demand for higher bandwidth and faster data transmission increases [7] - COHR faces competition in the Silicon Carbide (SiC) market from companies like Wolfspeed and ON Semiconductor, which are pushing technological boundaries [8][10] - The Zacks Consensus Estimate for COHR indicates a 9% growth in sales and a 29% increase in EPS for fiscal 2026 [16] Arm Holdings plc (ARM) Summary - ARM's chip architectures are essential for mobile computing, powering devices from major companies like Apple, Qualcomm, and Samsung, and maintaining a competitive edge through efficiency and performance [11] - The company is becoming increasingly relevant in the AI and IoT sectors, with its architecture supporting the growing demand for embedded AI models [12] - ARM faces challenges in China due to the rising adoption of RISC-V, which could limit its growth in this key market [13] - The potential move into producing its own CPUs presents both opportunities for market expansion and risks of straining relationships with existing customers [14][15] - The Zacks Consensus Estimate for ARM suggests an 18% year-over-year growth in sales, with EPS expected to grow by 3% [19] Valuation and Investment Case - COHR is attractively valued with a forward P/E of 22.26X, while ARM's higher forward P/E of 72.07X reflects investor confidence in its growth potential [23] - COHR is viewed as the stronger investment case due to its execution in data center optics and expansion into Silicon Carbide, while ARM faces risks related to its dependence on China and potential channel conflicts [24] - Current Zacks Ranks indicate COHR as a Hold (3) and ARM as a Sell (4) [25]

Core Insights - Coherent Corp. has announced a new family of quad-channel integrated circuits aimed at enhancing the performance of optical transceivers for cloud, AI, and telecom networks [1][2] - The new products include a 4-channel driver for silicon photonics Mach-Zehnder modulators and a chipset for coherent optical links, designed to support 400G and 800G technologies [2][3] - The introduction of these ICs is expected to facilitate faster adoption of high-speed network technologies and support innovation in connectivity [3] Product Details - The product lineup features the CHR2075 driver for 800G and 1.6T pluggable modules, along with the CHR1094 and CHR2094 chipset for 400G ZR/ZR+ coherent optical links [2] - All integrated circuits are designed for lower power consumption while delivering industry-leading performance, which aids network operators in scaling capacity and reducing energy use [2] - The ICs come with an integrated 10-bit monitoring ADC and are controllable via a 4-wire SPI interface [2] Market Position and Future Plans - Coherent aims to leverage its 25 years of experience in high-speed fiber-optic communication ASICs to expand its open-market portfolio [1][3] - Full production release of the CHR1094 and CHR2094 is scheduled for November 2025, with the CHR2075 following in December 2025 [3] - Coherent will showcase these innovations at ECOC 2025, providing opportunities for engagement and live demonstrations [3] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for data centers, communications, and industrial markets [4][5] - Founded in 1971, the company operates in over 20 countries and offers a comprehensive technology stack and resilient supply chain [5]