Goldman Sachs’ 35 AI Superstars

25. Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 51 

Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. There are numerous factors that make this company a smart investment choice. An important factor is the company’s operational strength and effective cost management, as illustrated in the fiscal year report. Reported total revenue was $4.708 billion, with GAAP gross margin of 30.9% and on a non-GAAP basis, gross margin was 36.0% with net income per diluted share of $1.67. This reflects the company’s strong profitability and its potential for sustained growth. In addition, fourth quarter fiscal 2024 revenue increased by 9% sequentially, primarily driven by ongoing AI-related strength in the company’s Datacom transceiver business. Moreover, the company’s strong partnership with GE Vernova positions it as a lucrative investment opportunity in this AI-driven world. The company’s advancements in 800G transceivers are pivotal for handling the massive volumes of data required for AI workloads. These high-speed transceivers are integral to data centers and AI systems, facilitating faster and more efficient data processing, and adding a competitive edge to the company’s portfolio.