QM · rank #4 · 2026-06-03
COHR
NYSE · $71.00B
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +360.48% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +4.7% |
| Profit margin Net profit margin, trailing 12 months. | +7.1% |
| Market cap Size filter: > $500M required. | $71.00B |
| Anchor (recent) Close on 2026-05-04 | $329.89 |
| Anchor (far) Close on 2025-05-02 | $71.64 |
The AI research card
Independent qualitative review of each pick before the order is placed.
Summary
Coherent is a diversified photonics and materials supplier with leading positions in optical networking (datacom/AI transceivers), compound semiconductors (SiC/GaN) and industrial lasers, currently executing a post-merger turnaround with exposure to AI datacenter and EV capex cycles.
Rationale
12-month momentum of 3.6x combined with improving Q2 2025 revenue growth (+9% YoY) and margin expansion in Networking segment validates quality_momentum signal, as Coherent is gaining share in high-margin 800G/1.6T pluggables and benefiting from multi-year AI cloud infrastructure upgrades.
Material risks
- 1U.S.–China export controls on advanced optical and compound-semiconductor technologies could abruptly restrict shipments to key customers or force costly supply-chain reconfiguration, directly threatening Coherent's datacom and materials revenue visibility.
- 2Capacity ramp execution risk in SiC substrates and GaN epiwafers—critical bottleneck materials for EV and power-device demand—faces yield challenges, tool dependencies and customer inventory normalization that could compress margins or delay revenue realization despite strong order signals.
Verdict reasoning
two_stage score=+2/3 verdicts={'gemini': 'CAUTION', 'openai': 'PROCEED', 'claude': 'PROCEED'} brief=caller-supplied