20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

16) Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 51

Average Upside Potential: 29.03%

Coherent Corp. (NYSE:COHR) is engaged in making optical circuit switches for AI data centers, as the growth of AI and  ML technologies continues to create significant needs for data processing.  Notably, well-established AI giant Nvidia happens to be one of the company’s transceiver customers. In Q1 2025, Coherent Corp. (NYSE:COHR) saw its revenue coming at $1.35 billion, reflecting an increase of 28% YoY, thanks to the AI demand. The company’s focus on leveraging AI presents significant growth opportunities.

Notably, AI integration is expected to develop more advanced, efficient semiconductor products, potentially opening new market segments or applications. Also, AI-driven analytics are expected to optimize equipment maintenance schedules, which can help reduce downtime and improve production consistency. Morgan Stanley upped its price target on the company’s shares to $120 from $100, keeping an “Equal Weight” rating.

Invesco Distributors, Inc., an investment management firm, released its Q3 2024 investor letter. Here is what the fund said:

“Coherent Corp. (NYSE:COHR): This laser company develops and manufactures optoelectronic components and devices used in the communications, electronics and industrial markets. The company has been benefiting from growing awareness of an improved growth outlook driven by artificial intelligence (AI), given that its optical transceivers are key enablers for networking of AI servers.”