erent (US:COHR) Yahoo Finance·2025-09-17 17:18Core Thesis - Coherent Corp. is positioned as a compelling long-term investment with significant growth potential, driven by its diverse product offerings and strategic partnerships [1][2][3]. Financial Performance - Coherent reported quarterly revenue of approximately $1.5 billion, reflecting a 24% year-over-year increase, and has a market capitalization near $17 billion [2]. Market Position and Competition - The company has a broad laser and photonics portfolio with limited direct competition, primarily from Broadcom, TRUMPF Group, and Lumentum [3]. - Coherent's vertical integration and home-grown technology create a defensible market position in a growing sector [3]. Strategic Partnerships and Industry Trends - U.S. policy and industrial initiatives support local tech manufacturing, with Coherent being named a strategic partner by Apple in its $600 billion U.S. investment plan for 2025 [3]. Leadership and Management - Leadership under CEO Jim Anderson, appointed in mid-2024, enhances the investment case due to his proven track record in profitable growth and operational efficiency [4]. Technological Innovation - Coherent is a key beneficiary of the AI and cloud computing boom, with data-center interconnect sales increasing by approximately 60% recently due to AI workloads [4]. - The company is innovating in high-speed optical transceivers, including next-generation 1.6 Tb/s units expected in 2025, addressing critical data transmission bottlenecks [5]. Long-term Outlook - Coherent's combination of market leadership, technological advantage, and alignment of growth and innovation presents a strong long-term upside potential [5].