12 AI News and Analyst Ratings You Probably Missed

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2. Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 71

Coherent Corp. (NYSE:COHR) develops and supplies engineered materials, optoelectronic components, and laser systems for industrial, communications, electronics, and instrumentation markets.

On March 24, Raymond James analyst Simon Leopold upgraded Coherent (NYSE:COHR) and Lumentum Holdings Inc. (NASDAQ:LITE) from Outperform to Strong Buy after insights from Nvidia’s GTC and Corning’s analyst meetings. The analyst revised his price target on COHR stock to $91 from $110 and trimmed his price target on LITE stock to $82 from $96. The firm believes concerns about Co-Packaged Optics (CPO) are exaggerated. It has revised its datacom optical model, forecasting $22.2 billion in AI backend transceiver sales by 2030, with a ~30% annual growth rate. Its 2027 estimate for AI backend revenue increased to $7.5 billion from $7.1 billion.

Nvidia’s Blackwell orders suggest stronger near-term 800G demand, with projections of 15 million units in 2025. Additionally, the optical telecom market is showing signs of recovery, and industrial lasers appear to be stabilizing. With Coherent and Lumentum stocks under pressure ahead of the OFC trade show, greater clarity on CPO could serve as a positive catalyst.

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