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AI Bandwidth Boom Fuels Photonics Giant
3 Sep
Summary
- Datacenter segment sales grew 59% year over year.
- Company aims for $3 billion quarterly revenue run rate.
- Indium phosphide capacity doubles to meet demand.
Coherent's (COHR) Datacenter and Communications segment is a major growth driver, achieving a 59% year-over-year sales increase in the most recent quarter and accounting for 79% of total sales. The photonics manufacturer, which provides essential lasers and optical components for AI datacenters, is demonstrating strong fundamental growth despite a recent stock pullback.
To capitalize on surging demand, Coherent is doubling its indium phosphide capacity this quarter and plans another expansion by the end of fiscal year 2027. This move directly addresses the supply constraints for high-speed transceivers, vital for 800G and 1.6T applications.
Management has set an aggressive target, aiming for a quarterly revenue run rate exceeding $3 billion by the close of fiscal year 2027. This forward-looking strategy signals confidence in continued market expansion and the company's ability to scale production.
