On June 25, COHERENT rose 6.19% in regular trading, trading at $417.7/share, with turnover of $151 million. The rally was driven by a broad rebound across the optical communication sector and continued catalysis from the company's Texas indium phosphide (InP) expansion project.
On the sector front, optical communication stocks staged a strong recovery following last week's selloff triggered by a bearish CPO research report. Corning gained 7.24% and Vishay Intertechnology rose 4.64% on the same day, demonstrating significant sector-wide momentum. Fundamentally, COHERENT's Sherman, Texas 6-inch InP wafer fabrication facility expansion has achieved important milestones — the project will double production floor space and quadruple wafer capacity, supported by a $50 million CHIPS Act subsidy. NVIDIA has invested $2 billion in the company and signed a long-term procurement agreement, with institutions forecasting AI data center InP demand to grow at an 85% CAGR, reinforcing confidence in the capacity expansion trajectory.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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