13 Best Technology Stocks to Buy for Long-Term Investment

10. Coherent Corp. (NYSE:COHR)

3-Year Revenue CAGR: 20.00%

Number of Hedge Fund Holders: 71

Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components & devices, and optical & laser systems & subsystems. These are used in industrial, communications, electronics, and instrumentation markets. The company also benefits from the demand for AI-related components like optical transceivers, which are required by data centers.

On May 8, B. Riley analyst Dave Kang lowered the firm’s price target on Coherent to $77 from $95 with a Neutral rating following the company’s FQ3 2025 report, where the revenue increased by 24% year-over-year to a record $1.5 billion. The Networking revenue in particular surged by 45% year-over-year due to the booming AI data center market, which itself achieved record Q3 revenue with 54% growth. However, the reduced price target reflects the contraction of the optical group in recent months.

To support the demand for optical networking solutions, Coherent Corp. (NYSE:COHR) is expanding its in-house indium phosphide capacity, which grew by ~3x year-over-year in FQ3. The company is ramping volume production on its new 6-inch indium phosphide platform next quarter. Coherent is also advancing its new data center Optical Circuit Switch/OCS platform, which will expand the company’s addressable market.

Diamond Hill Select Strategy stated the following regarding Coherent Corp. (NYSE:COHR) in its Q4 2024 investor letter:

“Among our other top Q4 contributors were Amazon, WESCO and Coherent Corp. (NYSE:COHR). Coherent is a global leader in materials, networking and lasers for the industrial, communications, electronics and instrumentation markets. Demand for optical transceivers used in AI datacenter buildouts has been robust, benefiting Coherent and resulting in higher earnings and new orders which suggest momentum is likely to continue.”