Coherent (COHR) Surged on Accelerated Demand

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as Coherent Corp. (NYSE:COHR). Coherent Corp. (NYSE:COHR) manufactures and distributes engineered materials, optoelectronic components, and devices. The one-month return of Coherent Corp. (NYSE:COHR) was 22.40%, and its shares gained 49.35% of their value over the last 52 weeks. On October 29, 2025, Coherent Corp. (NYSE:COHR) stock closed at $138.06 per share, with a market capitalization of $21.666 billion.

Diamond Hill Select Fund stated the following regarding Coherent Corp. (NYSE:COHR) in its third quarter 2025 investor letter:

“Other top contributors in the quarter included Cimpress, Red Rock Resorts and Coherent Corp. (NYSE:COHR). Coherent, a global leader in materials, networking and lasers for the industrial, communications, electronics and instrumentation markets, is benefiting from strong demand for its data center-related products, especially its optical transceivers.”

Coherent (COHR) Rallies 5.77% as Funds Flock to AI Stocks

Coherent Corp. (NYSE:COHR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 66 hedge fund portfolios held Coherent Corp. (NYSE:COHR) at the end of the second quarter, up from 61 in the previous quarter. While we acknowledge the risk and 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 time frame. If you are looking for an AI stock that is more promising than Coherent Corp. (NYSE:COHR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Coherent Corp. (NYSE:COHR) and shared Diamond Hill Capital Select Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.