COHERENT's stock plummeted 5.11% during intraday trading on Tuesday, extending a multi-session correction trend for the optical communications company.
The decline is primarily driven by ongoing post-earnings profit-taking combined with a broad optical communications sector pullback. COHERENT had previously reported record fiscal Q3 revenue with 21% year-over-year growth and secured a $2 billion strategic investment from NVIDIA, which propelled the stock to all-time highs. However, shares have faced sustained selling pressure across multiple trading sessions as investors lock in gains following the sharp rally.
The sector-wide retreat has intensified downward pressure, with Applied Optoelectronics declining over 10% and Lumentum falling nearly 8% in recent sessions. This broad weakness in the optical communications sector has amplified selling pressure on COHERENT through sector-wide resonance, contributing to the stock's significant intraday decline.
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