30 Best and Worst Data Center Stocks

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6. Coherent Corp. (NYSE:COHR)

Upside Potential: 38%

Number of hedge funds: 51

Coherent Corp. (NYSE:COHR) is a developer and manufacturer of engineered materials, networking products, optoelectronic components, and optical and laser systems for the industrial, communications, electronics, and instrumentation markets. The company holds a strong position in the optical communications market, particularly with its innovative solutions for data centers, such as datacom optical transceivers.

In March 2024, Coherent Corp. introduced its Optical Circuit Switch (OCS), specifically designed for AI data center deployments. This innovation aims to reduce the number of electrical switches required, thereby cutting costs and power consumption. On January 25, 2025, a Barclays analyst raised the price target for Coherent Corp. (NYSE:COHR) to $125 from $105 and reiterated his Overweight rating.

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