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Modern AI data centers operate as distributed compute systems, where performance depends not only on accelerators, but also on the high-speed interconnects that move data between them. As AI systems scale, moving data
Filed: 2026-09-15 AccNo: 0001683168-26-007160 Size: 278 KB Item 1.01: Entry into a Material Definitive Agreement Item 2.03: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant Item 9.01: Financial Statements and Exhibits
Coherent Corp (COHR) has experienced a 24% monthly decline after a 155% annual surge. Despite premium valuation, the company's AI-focused portfolio, strong datacenter revenue growth (58.6% YoY), expanding margins, and capacity expansion plans support a positive long-term outlook. The stock is rated a Buy, though risks include hyperscaler spending cycles and customer concentration.
Coherent reported fiscal Q4 revenues of $2.05 billion, with datacenter and communications segment generating $1.62 billion (79% of total revenue), up significantly from $1.02 billion a year ago. The company's stock has surged 171% over the past year, driven by strong AI and optical transition demand. Peers Lumentum and Fabrinet are similarly benefiting from the datacenter boom, though supply chain and inventory concerns persist.
U.S. stocks were mixed as the Dow fell 150 points; Mistras surged on a $20.35/share buyout deal, while crypto and tech stocks gained.
AXT, a semiconductor substrate manufacturer, is positioned as a critical supplier for AI data-center optical interconnects, particularly in indium phosphide (InP) substrates. The company reported record Q2 2026 revenue of $47.6M (up 165% YoY) with 44.9% gross margins and a 170% EPS beat. With a >$100M backlog, planned capacity expansions to $35M quarterly by end-2026 and $65-70M by 2027/early 2028, and progression toward 6-inch wafers, AXT is transitioning from a cyclical substrate maker into a critical AI infrastructure supplier. However, risks include potential slowdown in AI optical spending, China export controls, and margin sustainability.