We recently published a list of Top 11 AI News Updates on Wall Street’s Radar. In this article, we are going to take a look at where Coherent Corp. (NYSE:COHR) stands against other top AI news updates on Wall Street’s radar.
The future of artificial intelligence promises transformative advancements across various sectors as revolutionary technology augments human capabilities and drives innovation at levels not seen before. AI is already transforming the world of machines and diminishing the need for human interaction from healthcare to financial services, retail and industrial sectors.
Amid the advancements, the new US administration is rethinking the role the public sector should play in fueling and driving the future of artificial intelligence. Letting the private sector handle the development with minimal government interference and funding is emerging as Donald Trump’s administration policy, in stark contrast to Biden’s policies.
President Donald Trump has already hinted at eliminating the 2022 Chips and Science Act, which set $52 billion to help spur domestic semiconductor manufacturing and research. Instead, he has provided a framework and environment where companies invest billions of dollars to develop and run the AI infrastructure. That’s evident in the $500 billion Stargate project.
Additionally, Trump has surrounded himself with former and present venture capitalists who have advocated for less regulation of AI businesses, such as Vice President JD Vance and AI Czar David Sacks. The White House’s plan to lessen government funding and direction of AI development is a big risk that could endanger the US’s leadership in AI at a time when Trump has stated that outperforming China is a top priority.
“There is no private sector innovation without public sector research and development,” said Calendar Nelson, senior fellow at the Center for American Progress and former acting director of the White House Office of Science and Technology Policy. “Government-funded research creates the foundational knowledge that companies later build upon — from the internet and GPS to genomics and AI.”
Over the years, government spending on research and development has always acted as a key catalyst in driving innovation and growth. According to a Federal Reserve Bank of Dallas analysis, productivity increases dramatically when government research funding increases, producing long-lasting economic benefits that greatly exceed the initial investment.
On the other hand, China has adopted a very different tack from the US, which is debating the extent to which the public sector should finance advancements in AI innovation. Approximately 60% of all money entering China’s scientific and technology ecosystem comes from government-related sources, per a study published in late 2023 by the research firm Rhodium Group.
Our Methodology
For this article, we identified AI stocks by reviewing news reports, stock analysis, and press releases. These stocks are also popular among hedge funds and we have mentioned the hedge fund sentiment around these stocks, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A row of precision industrial lasers in action, cutting the most intricate of shapes.
Coherent Corp. (NYSE:COHR)
Number of Hedge Fund Holders: 71
Coherent Corp. (NYSE:COHR) is a technology company that develops, manufactures, and markets engineered materials, optoelectronic components, and optical and laser systems. The company is also driving innovation in AI and machine learning (ML) by providing high-speed datacom transceivers and optical components for AI data centres. On March 20, the leader in photonics unveiled a 2x400G-FR4 Lite optical transceiver designed explicitly for AI-driven data centers and high-speed Ethernet networks.
The transceiver can deliver a 500-meter reach while reducing power consumption, making it a perfect fit for high-volume deployments. The 2x400G-FR4 Lite is engineered to support the explosive growth of AI and ML workloads. Its competitive edge stems from lowering power consumption through silicon photonics integration.
“The 2x400G-FR4 Lite is built with silicon photonics, reinforcing our commitment to selecting the best technology for each application,” said Dr. Lee Xu, Executive Vice President, Datacom Transceivers. “With a technology portfolio that spans vertical-cavity surface-emitting lasers (VCSEL), electro-absorption modulated lasers (EML), directly modulated lasers (DML), and silicon photonics, we tailor our solutions to optimize performance, efficiency, and cost for each application.
Overall, COHR ranks 7th on our list of top AI news updates on Wall Street’s radar. While we acknowledge the potential of COHR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
