Coherent (COHR) is a leading global provider of laser technologies and photonics, with revenues expected to double from $3.3 billion in June 2022 to $6.7 billion by June 2026. The stock has surged 290% in the same period, driven by demand for optical solutions in AI/datacenter buildout.

Coherent collaborates with NVIDIA on developing silicon photonics networking switches for AI factories, boosting investor enthusiasm. NVIDIA’s use of optical solutions like Co-Packaged Optics (CPO) for lower latency connections across data centers highlights the potential growth of this partnership.

Coherent’s strategic supply agreement with Apple involves producing VCSELs for Face ID technology in iPhones and iPads. This partnership expands Coherent’s role in providing innovative solutions, with a focus on optoelectronic applications and next-generation products at their manufacturing facility in Texas.

Zacks Investment Research is set to announce their top 10 stock picks for 2026 on January 5, following a history of impressive performance. With Director of Research Sheraz Mian selecting the best 10 tickers from 4,400 companies, investors can anticipate exceptional growth potential and market insights for the upcoming year.

Read more at Nasdaq: Bull of the Day: Coherent (COHR)