COHERENT Overnight Rise 3%, Jensen Huang Attends Groundbreaking Ceremony For Expanded Indium Phosphide Production Facility

On June 17, COHERENT rose 3.08% overnight, The stock continued its upward momentum driven by a high-profile strategic milestone event.

On the news front, NVIDIA CEO Jensen Huang and Coherent CEO Jim Anderson jointly attended the groundbreaking ceremony for the company's indium phosphide wafer fabrication facility expansion in Sherman, Texas. The project focuses on 6-inch indium phosphide wafers and optical interconnect capacity, with production area set to double and wafer capacity to increase fourfold upon completion. Simultaneously, the company announced securing $50 million in dedicated funding under the U.S. CHIPS Act, formalized through a preliminary agreement with the Department of Commerce.

Strategically, NVIDIA has previously invested $2 billion in Coherent with a long-term procurement agreement in place. Institutional forecasts project AI data center demand for indium phosphide to grow at an 85% compound annual growth rate. As the world's first manufacturer to achieve volume production on 6-inch indium phosphide wafers, the capacity expansion further solidifies Coherent's leadership position in next-generation optical interconnects for AI infrastructure.

Meanwhile, optical communication stocks generally rose in overnight trading; POET Technologies Inc and Credo Technology Group Holding Ltd Gain Over 3%, While Applied Optoelectronics and Astera Labs, Inc. Advance 2.7%.

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