Core Insights - The article highlights the author's strong passion for markets and investment research, emphasizing a focus on transformative technologies that can disrupt traditional markets [1] - The investment approach is centered around value investments with medium to long-term growth horizons, aiming for substantial upside while managing risk [1] - The author expresses a commitment to supporting everyday investors by providing high-quality insights that facilitate informed decision-making [1] Investment Strategy - The investment strategy is characterized by a value-oriented approach, focusing on identifying opportunities with significant growth potential [1] - The author has developed a deep understanding of various investment strategies over five years of market observation [1] - The emphasis is placed on medium to long-term growth horizons, indicating a preference for sustainable investment opportunities [1] Market Dynamics - There is a strong interest in understanding how global trends impact market dynamics and long-term investment opportunities [1] - The author aims to analyze transformative technologies across various sectors, indicating a broad industry-agnostic perspective [1] - Engagement with the Seeking Alpha community is highlighted as a means to share insights and enhance investment choices for others [1]

Core Insights - Coherent Corp. will showcase its innovations in co-packaged optics (CPO) at NVIDIA GTC DC 2025, highlighting its extensive portfolio of CPO-enabling technologies [1][2] - The company's participation emphasizes its leadership in advancing photonic technologies essential for AI infrastructure and high-speed photonics [2][3] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [4][5] - Established in 1971, Coherent operates in over 20 countries, offering a comprehensive technology stack and resilient supply chain to address complex technology challenges [5]

Core Insights - Coherent Corp. will release its financial results for the quarter ended September 30, 2025, on November 5, 2025, after the NYSE closes [1] - A live audio webcast will follow the release at 5:00 p.m. ET to discuss the results [1][2] Company Overview - Coherent is a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [3] - The company was founded in 1971 and operates in over 20 countries, offering a broad technology stack and strong supply chain resilience [4]

Group 1 - Barclays has downgraded the ratings of Lumentum (LITE.US), Astera Labs (ALAB.US), and Marvell Technology (MRVL.US) from "Overweight" to "Hold" due to decreased attractiveness compared to other AI-focused companies [1] - Lumentum's stock price has increased by 60% over the past three months, significantly outperforming the S&P 500's 5% increase, but its risk-reward profile is no longer favorable compared to peers [1] - Astera Labs faces market penetration issues with its UALink product, lacking significant advantages outside of the Amazon Trainium 3 project, and risks being marginalized as the industry shifts towards Ethernet, ESUN, and SUE-T solutions [1] Group 2 - Marvell Technology's rating was lowered due to its specialized integrated circuit business underperforming initial expectations and additional market risks facing its data center business [1] - Barclays is not bearish on the semiconductor sector overall, having upgraded the rating of KLA Corporation (KLAC.US) to "Overweight," citing optimism about long-term growth prospects and KLA's leading position in process control [2] - KLA is expected to experience strong growth as revenue from markets outside of China is anticipated to increase with relatively low entry barriers [2]

Investment Rating - The report suggests to continue focusing on investment opportunities within the communication industry [2] Core Insights - The communication industry showed steady revenue growth and accelerated profitability in H1 2025, with total revenue reaching 1785.003 billion yuan, a year-on-year increase of 10.07%, and net profit attributable to shareholders at 160.432 billion yuan, up 11.26% year-on-year [4][7] - The AI computing industry chain is expected to continue accelerating its development in 2025, benefiting the communication industry [17][19] Summary by Sections H1 2025 Performance Overview - The communication industry achieved a total revenue of 1785.003 billion yuan in H1 2025, with a year-on-year growth of 10.07%, and a net profit of 160.432 billion yuan, reflecting an 11.26% increase [4][7] Segment Performance Changes - In H1 2025, the optical module and device segment reported revenue of 47.988 billion yuan, a year-on-year increase of 64.88%, and net profit of 10.876 billion yuan, up 111.99% [25] - The communication PCB segment achieved revenue of 57.249 billion yuan, a year-on-year increase of 37.66%, and net profit of 8.058 billion yuan, up 80.79% [31] - The network equipment segment generated revenue of 507.111 billion yuan, a year-on-year increase of 28.86%, with net profit of 19.184 billion yuan, up 19.57% [37] AI Industry Chain Investment - Major overseas cloud companies are expected to maintain optimistic growth in capital expenditures, with a total of 95 billion USD in Q2 2025, reflecting an 82.96% year-on-year increase [17] - Companies like Oracle and Nvidia are showing strong growth prospects in their AI-related businesses, with Oracle's unfulfilled revenue reaching 455 billion USD, a year-on-year increase of 359% [22][19]

Group 1 - Nvidia is recognized as the "de facto AI infrastructure company" and is highlighted as a key stock to watch [1] - Coherent (COHR) is also identified as a significant player in the AI data center sector [1] - United Rentals (URI) is noted for its exposure to data centers within the construction equipment supply industry [1] Group 2 - Sea Ltd. (SE), a Singapore-based gaming and e-commerce company, is included in the list of stocks near buy points [1] - Expedia Group (EXPE) rounds out the list of five stocks that are being monitored for potential investment opportunities [1] Group 3 - The stock market experienced a rebound to new highs last week, indicating positive market sentiment [2] - Upcoming events include OpenAI's DevDep Day, the release of Fed Minutes, and Taiwan Semiconductor's monthly sales report, which may impact market dynamics [2]

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]