Coherent Corp. (NYSE:COHR) is one of the 10 Best Stocks to Invest In According to Billionaire Steve Cohen.
Coherent Corp. (NYSE:COHR) has consistently featured in the 13F portfolio of Point72 Asset Management since the second quarter of 2023. Back then, this position comprised more than 300,000 shares. The fund then increased this position steadily, upping it to 4.2 million shares by the second quarter of 2024. It then trimmed the holding for a couple of quarters before buying the stock again. Latest filings, submitted at the end of the fourth quarter of 2025, show that the fund owned more than 3.3 million shares in the company, down close to 14% compared to filings for the third quarter of 2025.
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Coherent Corp. (NYSE:COHR) has surged to the top of buy lists for hedge funds following the announcement of a multi-year strategic agreement with NVIDIA. Under the deal, the latter is investing $2 billion into Coherent to expand its R&D and US-based manufacturing capacity. Hedge funds are also betting on Coherent’s leadership in silicon photonics and co-packaged optics, which NVIDIA views as essential for the next generation of AI factories. This partnership effectively locks in Coherent as the primary supplier for NVIDIA’s 2027–2028 hardware roadmap. In its Q2 fiscal 2026 results, Coherent proved it could monetize the AI cycle more effectively than peers. Revenue hit $1.7 billion, beating analyst estimates. This was driven by unprecedented demand for optical networking products in the Datacenter Communications segment.
While we acknowledge the potential of COHR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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