Fidelity Investments released its Q4 2025 investor letter for the Fidelity Growth Strategies Fund, a diversified equity strategy focused on domestic midcap growth stocks. The fund returned -3.44% in the quarter, outperforming the benchmark Russell Midcap® Growth Index. The U.S. stock market rebounded in Q4, driven by strong corporate fundamentals and AI spending.

Coherent Corp. (NYSE: COHR) was highlighted in the investor letter as a leading contributor to the fund. The US-based technology company saw a 21.86% return in the past month and shares are up 110.03% over the past year. Coherent Corp. has a market cap of $33.159 billion and closed at $211.00 per share on February 4, 2026.

In the Q4 2025 investor letter, Fidelity Growth Strategies Fund mentioned Coherent Corp. (NYSE: COHR) as a top contributor, with a 71% return. Coherent manufactures precision optical components and coatings, benefiting from AI infrastructure investment and semiconductor demand. The company recently sold its aerospace and defense division for $400 million to focus on its core business.

Coherent Corp. (NYSE: COHR) saw a 5.77% rally as funds flock to AI stocks. While 78 hedge fund portfolios held Coherent Corp. at the end of Q3 2025, some believe other AI stocks offer greater potential. Investors seeking undervalued AI stocks can explore opportunities in the market for potential upside.

Read more at Yahoo Finance: Better-Than-Expected Results Lifted Coherent (COHR) in Q4