10 Most Oversold Data Center Stocks to Buy According to Analysts

3. Coherent Corp. (NYSE:COHR)

YTD returns: -15%

Potential Upside: 50%

Number of Hedge Fund Holders: 71

Coherent Corp. (NYSE:COHR) specializes in the development and manufacturing of engineered materials, networking products, optoelectronic components, and optical and laser systems for various industries, including industrial, communications, electronics, and instrumentation. The company maintains a strong foothold in the optical communications market, particularly with its advanced solutions for data centers, such as datacom optical transceivers.

Following a remarkable 118% surge in share price in 2024, Coherent Corp. (NYSE:COHR) has faced a more cautious start to 2025, with shares declining 15% year-to-date. On February 5, the company reported Q2 2025 revenue of $1.43 billion, reflecting a 27% year-over-year increase and a 6% sequential rise, fueled by AI-driven growth in datacom, telecom, and industrial segments. Profitability also saw significant improvement, with gross margin expanding by 363 basis points to 38.2%, and earnings per share (EPS) soaring to $0.95—more than tripling year-over-year.

Following the earnings release, analysts at Bank of America raised their price target on Coherent Corp. (NYSE:COHR) from $120 to $125 while reaffirming their Buy rating. They anticipate continued growth in the company’s AI optics portfolio, as demand in the transceiver market remains stronger than supply.