Billionaire Stanley Druckenmiller’s Top 10 Stock Picks

3. Coherent Corp. (NYSE:COHR)

Duquesne Capital’s Stake Value: $264,821,000

Number of Hedge Fund Holders: 51

Coherent Corp. (NYSE:COHR) ranks third on our list of the top 10 stock picks of Stanley Druckenmiller. The semiconductor manufacturing company is headquartered in Pennsylvania, United States, and is a leading provider of advanced illumination solutions for 3D sensing applications.

It is no surprise that Coherent Corp. (NYSE:COHR) is part of the AI revolution. In the fiscal first quarter of 2025, the company saw solid financial results, driven by its AI-related datacom transceivers. In the fiscal first quarter alone, the company launched several new products including lasers for silicon photonics, produced cutting-edge industrial fiber lasers, and demonstrated its key datacom transceiver multi-technology at the European Conference on Optical Communications (ECOC’ 24).

Overall, revenue for the quarter reached $1.35 billion, an increase of 28% from the same period in the last fiscal year. Consequently, Coherent Corp. (NYSE:COHR) increased revenue guidance for the fiscal second quarter of 2025, expecting it to reach $1.33-$1.41 billion. Gross margin is also expected to range between 36-38%. Coherent Corp. (NYSE:COHR) is set to benefit from the AI revolution and owns extremely crucial technologies, explaining why 51 hedge funds held stakes in the stock at the end of Q3 2024.

Artisan Partners stated the following regarding Coherent Corp. (NYSE:COHR) in its Q3 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in CBRE Group, Tetra Tech and Coherent Corp. (NYSE:COHR). Coherent is a global leader in engineered materials, optoelectronic components and lasers. The company is experiencing strong AI-related demand for its data center optical networking products, which serves a key industry bottleneck as customers try to optimize the efficiency of their AI investments. We believe this AI exposure and an upturn in its more cyclical segments should lead to meaningful multiyear revenue growth. Meanwhile, we believe its new CEO, whom we know well from our campaign in Lattice Semiconductor, will drive meaningful change in the business, including divesting slow-growth business segments and driving much-needed operational improvements to unlock margin expansion opportunities.”