Nvidia’s investment in the photonic company Coherent has propelled COHR to new highs. Should investors chase the rally or wait for a pullback?

As Nvidia and other tech giants push for gigawatt-scale AI factories, Coherent's innovations are lighting the path forward, positioning the company to capture significant market share in a sector projected to explode with hundreds of billions in capex through 2027.

Nvidia Corp. (NASDAQ: NVDA) is doubling down on artificial intelligence infrastructure with a $4 billion investment in optical networking companies and a new push into 6G. The biggest tech giant by market cap agreed to invest $2 billion each in Lumentum Holdings Inc. (NASDAQ: LITE) and Coherent Corp. (NYSE: COHR) under separate multi-year deals.

Lumentum Holdings (NASDAQ:LITE) and Coherent (NYSE:COHR) shares climbed about 7% in premarket trading Monday after Nvidia detailed expanded partnerships and multibillion-dollar investments in both optical component makers.

Coherent stock (COHR) gets a Strong Buy on AI datacenter demand and Nvidia partnership. Read the latest analysis on the stock here.

SAXONBURG, Pa., Sept. 15, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in photonics, today announced the launch of the WELD1D+, a next-generation laser welding processing head with integrated application programming interface (API ...