Billionaire Stan Druckenmiller Is Betting On AI Infrastructure, Tobacco and Industrial Stocks

1. Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 47 

Duquesne Capital’s Stake: $260,098,000

Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components and devices, and optical and laser systems and subsystems for the use in the industrial, communications, electronics, and instrumentation markets worldwide. The fourth quarter earnings report of the firm paints an interesting picture for investors. The revenue for the quarter was $1.31 billion, beating market expectations of $1.28 billion, and even exceeding the upper end of the guidance range, which was $1.3 billion. The revenue grew 9% year-on-year, primarily driven by mid-teens growth in networking. The AI products the company designs and markets are part of this segment.

This AI growth story of Coherent Corp. (NYSE:COHR) has attracted the attention of Wall Street. Following the release of fourth quarter results, B Riley analyst Dave Kang raised the price target on the stock to $86 from $78 and kept a Buy rating, noting that orders for the firm were up in Q4 and were expected to be up again in Q1, with the artificial intelligence cycle providing a significantly long runway.

While we acknowledge the potential of Coherent Corp. (NYSE:COHR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Coherent Corp. (NYSE:COHR) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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