Coherent Corp. (COHR): Billionaire Rob Citrone Opens New Position

Coherent Corp. (NYSE:COHR) is one of the 10 Best Stocks to Buy According to Billionaire Rob Citrone.

Even though Coherent Corp. (NYSE:COHR) is one of the largest positions in the 13F portfolio of Discovery Capital Management, it is a recent addition to the list. The fund purchased a stake in the company in the fourth quarter of 2025, filings show. The firm develops, manufactures, and markets engineered materials, optoelectronic components and devices, and laser systems for the use in the industrial, communications, electronics, and instrumentation markets worldwide. The company has emerged as an AI powerhouse in recent years, especially in the context of mega deals with NVIDIA.

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For example, at the 2026 OFC Technology Conference, Coherent Corp. (NYSE:COHR) announced a step function expansion of its partnership with NVIDIA. Under the deal, Coherent has secured a multibillion-dollar deal to supply co-packaged optics and high-power lasers that integrate directly onto GPU packages. As GPUs become more powerful, traditional electrical data transmission creates a bottleneck. Hedge funds are betting on Coherent’s tech to bring light to the chip, which is essential for the next generation of AI clusters. Hedge funds are also focused on the rapid shift in product mix toward higher-margin networking hardware. Coherent is currently ramping up production of 1.6T transceivers, which offer significantly higher margins than older 400G or 800G models. In February 2026, the company reported Q2 revenue of $1.69 billion, up 17% year-on-year, driven largely by the Datacenter & Communications segment, which now accounts for 72% of total revenue.

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