Core Insights - Coherent Corp. (COHR) and Arm Holdings plc (ARM) are key players in the high-growth tech infrastructure sector, with Coherent focusing on optical materials and semiconductors, while Arm specializes in semiconductor and software design [1] Group 1: Coherent Corp. (COHR) - Coherent reported a 17.3% year-over-year increase in revenues for the first quarter of fiscal 2026, driven by strong demand in the AI sector [2] - The company achieved a 1,081-basis-point year-over-year expansion in operating margin, indicating effective scalability essential for growth in the AI market [2] - Coherent's diverse product pipeline, including the rapid adoption of 800G transceivers, positions it well to meet the increasing demand for AI [3] - The company has a strong balance sheet with $875 million in cash reserves and only $48 million in debt, providing flexibility for investments [4] - Despite its growth trajectory, Coherent faces competitive pressure in the Silicon Carbide (SiC) market from companies like Wolfspeed and ON Semiconductor [5] - The Zacks Consensus Estimate for COHR indicates a 15.1% growth in sales and a 44.5% increase in EPS for fiscal 2026 [10] Group 2: Arm Holdings plc (ARM) - Arm Holdings benefits from a dual-sided network effect that connects software creators and hardware manufacturers, enhancing its position in mobile technology [6] - The company is recognized as a significant player in the AI and IoT sectors, with major clients like Apple, Qualcomm, and Samsung relying on its energy-efficient architecture [7] - However, ARM faces risks in China as local companies shift towards RISC-V, which could impact its growth in that market [8] - The Zacks Consensus Estimate for ARM shows a 21.5% growth in sales and a 5.5% increase in EPS for fiscal 2026 [11] - ARM is trading at a forward P/E ratio of 52.89, significantly higher than Coherent's 34.72, indicating a valuation gap [12] Group 3: Investment Recommendation - Coherent is recommended for portfolio addition due to its higher EPS growth outlook, attractive valuation, and robust liquidity position, despite ARM's dominance in mobile architecture [14]

Core Viewpoint - Coherent Corp. will release its financial results for Q4 2025 on February 4, 2026, followed by a live audio webcast to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the quarter ended December 31, 2025, will be announced after the New York Stock Exchange closes on February 4, 2026 [1]. - A live audio webcast will take place at 4:30 p.m. ET to discuss the financial results [1]. Group 2: Webcast Information - Investors are invited to join the live audio webcast at coherent.com/company/investor-relations/financial-webcasts [2]. - The webcast will be recorded, and a replay will be available within 24 hours after the live event on the company's website [2]. Group 3: Company Overview - Coherent is recognized as 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 unmatched supply chain resilience [4].

Core Insights - Coherent Corp. will showcase its extensive photonics product portfolio at SPIE Photonics West from January 20-22, 2026, highlighting innovations in lasers, beam delivery, advanced materials, and thermal management solutions [1][2] Product Announcements - Coherent will present a range of products including: - Bondable diamond for GPU cooling with ultra-high thermal conductivity [5] - Sapphire XT, a compact visible laser for super-resolution imaging in various applications [5] - OCT Specialty Fiber Assemblies optimized for clinical imaging applications [5] - CO2 Electro-Optic Modulator for high-throughput PCB via drilling [5] - FieldMax Touch Laser Power & Energy Meter for production environments [5] - Waveshaper 1000A Sharp, a programmable optical filter with fine spectral control [5] - Thermo-Electric Generation system to convert waste heat into usable power [5] - Quantum encryption demonstration in collaboration with QUSIDE [5] - Deep UV solution for film cutting in display and semiconductor applications [5] Technology and Product Demonstrations - Live demonstrations will occur at the booth, showcasing innovations and addressing critical trends in the photonics landscape [4] - Executives and experts will participate in discussions to share insights and developments that redefine technological boundaries [4] Industry Event Participation - Coherent will engage in a panel discussion on data infrastructure with co-packaged optics, featuring Dr. Sanjai Parthasarathi [5] - Presentations will cover various topics including fiber lasers, optical technologies, and high-performance materials [6][7][8] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for data centers, communications, and industrial markets [8][9] - Founded in 1971, the company operates in over 20 countries, offering a broad technology stack and supply chain resilience [9]

Core Insights - Coherent Corp. and Quside have achieved a significant milestone in hardware-based security by successfully demonstrating a mass manufacturable quantum entropy source, which is crucial for secure digital systems [1][10] Technology and Innovation - The solution utilizes Coherent's vertical cavity surface emitting laser (VCSEL) technology, manufactured at scale on 6" wafers, combined with Quside's quantum random number generation technology [2] - This marks the first instance where runtime entropy verification from a single VCSEL provides high-quality, observable randomness suitable for cryptographic key generation and secure communications [2] - The collaboration enables quantum-grade security primitives to transition from niche applications to mainstream processors and secure elements [2] Market Implications - The successful integration of quantum entropy technology into practical infrastructure is expected to meet the growing demand for entropy generation and verification in secure designs [3][4] - Coherent and Quside are positioned to facilitate high-volume commercial deployment of quantum entropy solutions for large-scale secure infrastructure [4] Company Background - Coherent is recognized as a global leader in photonics, providing technology solutions across various industries including datacenters and communications [5][6] - Quside specializes in quantum technology, focusing on building digital trust infrastructure solutions through quantum random number generator chips and modules [7]

Core Insights - Coherent Corp. has launched its innovative Bondable Diamond solutions aimed at enhancing thermal management in electronic and opto-electronic applications, significantly improving device cooling performance by reducing thermal interface resistance [1][3]. Product Features - The bondable diamond features controlled surface roughness, flatness, and coatings, allowing direct bonding to various semiconductor materials such as silicon, silicon carbide, and gallium nitride [2]. - This solution can reduce interface thermal resistance by up to 99% and is applicable for die sizes up to 100mm square, surpassing conventional thermal spreaders that rely on Thermal Interface Materials (TIMs) [3]. Manufacturing Capabilities - Coherent combines diamond growth, surface finishing, and advanced coating technologies, enabling the production of high-performance bondable diamond thermal spreaders at scale [4]. - The company has been a leading producer of technical diamond since 2010, positioning itself to deliver exceptional thermal performance tailored to customer needs [5]. Customer Collaboration - Coherent collaborates closely with customers to address complex thermal and process-integration challenges, integrating bondable diamond with other materials and features [6]. - The company is actively working with clients to develop compatible materials, coatings, and bonding processes for their device fabrication workflows [6]. Industry Position - Coherent is recognized as a global leader in photonics, providing technology solutions that drive innovation across various industries, including datacenters and communications [8][9].

Core Insights - The Department of Energy (DOE) is implementing the Fusion Science and Technology Roadmap (FS&T Roadmap) to transition fusion energy from laboratory research to commercial viability by the mid-2030s [1][5] - The roadmap outlines a phased approach: near-term focus on digitalization and infrastructure, mid-term on prototype integration, and long-term on grid delivery and scale-up [2][3] Near-Term Actions - Emphasis on digitalization and infrastructure preparation to support fusion technology development [1] - Launch of the AI-Fusion Digital Convergence Platform to enhance materials discovery and plasma behavior prediction [4] Mid-Term Actions - Integration of prototypes to test and refine fusion technologies [2] - Construction of small-to-medium test facilities and design completion for large-scale "First-of-a-Kind" (FOAK) facilities [4] Long-Term Goals - Delivery of power to the grid from the first fleet of pilot plants [4] - Expansion of public infrastructure to support a global fusion market, aiming to lower the levelized cost of energy [4] Core Technical Challenges - The DOE has identified six core technical challenge areas to address gaps in fusion technology [3] - Key areas include structural materials, plasma-facing components, confinement systems, fuel cycle and tritium processing, blankets, and plant engineering [4][10] Material Development - Development of Reduced Activation Ferritic Martensitic (RAFM) steels and vanadium alloys to withstand neutron bombardment and minimize radioactive waste [11] - Focus on tungsten for plasma-facing components to handle extreme heat without contamination [12] Fusion Confinement Methods - The FS&T Roadmap pursues both Magnetic Confinement Fusion and Inertial Confinement Fusion [14] - Magnetic confinement utilizes High-Temperature Superconducting (HTS) magnets to stabilize plasma, with Tokamaks and Stellarators as primary architectures [15][18] Inertial Confinement Fusion - This method employs high-energy lasers to compress fuel pellets, igniting plasma through micro-explosions [19] - Companies involved in producing optical components and high-power diodes are critical to this approach [20] Tritium Breeding and Fuel Cycle - The DOE aims for a closed-loop fuel cycle to breed tritium using lithium-containing blankets, ensuring domestic supply and minimizing reliance on international sources [21] - Companies like Oklo and BWXT are involved in tritium production and breeding technologies [24][25] Blanket Technology - The blanket in fusion reactors is essential for energy conversion, tritium breeding, and radiation shielding [29] - The DOE is aligning advanced fission research and development with fusion technology to create a unified supply chain [30] Plant Engineering and Systems Integration - Focus on the Balance of Plant (BOP) to ensure reliability and efficiency in converting fusion energy to electricity [31] - Innovations such as Supercritical CO2 turbines are being prioritized for their efficiency and smaller footprint [32]

Core Insights - Coherent Corp. has launched a new electro-optic modulator (EOM) for high-speed switching of CO₂ lasers in via drilling applications, providing a germanium-free solution capable of sub-microsecond pulse generation at laser powers up to 300W [1][4] Product Features - The new EOM is the only germanium-free ultra-fast switching solution on the market that can produce pulses shorter than 1µs with sub-200ns rise and fall times, setting a new standard for precision laser modulation in via drilling [2][3] - The EOM's germanium-free architecture offers higher power handling, shorter pulse capability, and faster switching performance compared to traditional acousto-optic modulators (AOMs), which are becoming increasingly scarce and expensive [3] Market Context - Via drilling is a critical segment of semiconductor manufacturing, and the scarcity of germanium has made sourcing traditional AOMs challenging, highlighting the importance of Coherent's EOM in addressing supply chain constraints [3] - The launch of the EOM comes at a time when supply security is crucial, as it eliminates dependence on scarce materials while providing a more accessible price point for the market [4] Company Background - Coherent has over 50 years of experience in developing electro-optic modulators and aims to enhance the via drilling market with this new EOM, which features improved reliability and ease of use compared to previous generations [4] - The company operates globally, providing technology solutions across various industries, including datacenters, communications, and industrial markets [5]

Core Insights - Coherent Corp. has launched AxioView™ imaging fiber assemblies aimed at enhancing optical coherence tomography (OCT), near-infrared spectroscopy (NIRS), and multimodal catheter-based imaging systems [1][4] - The new product is engineered for cardiovascular, neurovascular, and gastrointestinal applications, providing high-resolution, minimally invasive imaging while meeting stringent manufacturing requirements [2][3] Product Features - AxioView™ imaging fiber assemblies feature specialty fiber designs optimized for OCT and NIRS imaging, with catheter-ready assembly options including ball tip, side-fire, and chisel distal geometries [3] - The product supports medical OEMs by accelerating development timelines and ensuring consistent optical performance from prototypes to high-volume production [2][3] Market Positioning - The launch of AxioView™ strengthens Coherent's position in the expanding medical photonics market, which is driven by the demand for image-guided procedures, an aging population, and a shift towards minimally invasive care [4] - The product is currently available for customer evaluation, with further information to be presented at Photonics West 2026 in San Francisco [4]

Core Insights - Coherent Corp.'s AI initiatives are driving significant revenue growth, with a 51% year-over-year increase in the data center and communications market for fiscal 2025, and a 61% increase specifically in the data center segment [2] - The company reported a 17.3% year-over-year rise in its top line in the first quarter of fiscal 2026, with datacenter revenues growing by 23%, indicating strong demand for AI solutions [3][9] - Coherent's operating margin expanded by 1,081 basis points year-over-year, suggesting scalability in its operations, which is crucial for growth in the AI market [3] Product Pipeline and Market Opportunities - The swift adoption of the 1.6T transceiver and higher yields from the 6-inch Indium Phosphide (InP) are expected to support further growth in 2026 [4][9] - The Optical Circuit Switch market is valued at over $2 billion, presenting a significant growth opportunity for the company [5][9] - The divestiture of the Aerospace and Defense business allows Coherent to focus on high-margin AI demand, streamlining its product portfolio [5] Market Outlook - The global AI datacenter market is projected to reach $13.6 billion, with a compound annual growth rate (CAGR) of 28.3% through 2030, indicating a favorable environment for Coherent's growth [6] - Coherent's stock has increased by 99.4% over the past year, outperforming the industry average growth of 13.9% [7] Valuation Metrics - Coherent trades at a 12-month forward price-to-earnings ratio of 33.89X, which is a premium compared to GigaCloud Technology's 11.79X but lower than AppLovin's 39.62X [11] - The Zacks Consensus Estimate for Coherent's earnings for fiscal 2026 and 2027 has seen increases of 1.2% and 1.1%, respectively, over the past 60 days [13]

Core Insights - Coherent Corp. has been recognized in Forbes 2026 America's Best Companies list, highlighting its excellence in financial performance, employee sentiment, and corporate reputation [1][2][3] Company Overview - Coherent is a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [4] - The company was founded in 1971 and operates in over 20 countries, offering a broad technology stack and strong supply chain resilience [5] Recognition and Culture - The recognition by Forbes is attributed to the company's commitment to fostering an inclusive and high-performance culture, where employees are supported and empowered [3] - The CEO emphasized the importance of innovation and strong execution in maintaining the company's competitive edge [3]