Is COHR a good stock to buy? We came across a bullish thesis on Coherent Corp. on FundaAI’s Substack. In this article, we will summarize the bulls’ thesis on COHR. Coherent Corp.’s share was trading at $347.51 as of April 20th. COHR’s trailing P/E was 340.70 according to Yahoo Finance.
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These growth vectors have clearly defined revenue timelines: OCS is already generating revenue, CPO/NPO ramps in H2 2026, Multi-Rail in H1 2027, and Thermal Solutions in H2 2027, signaling multiple upcoming catalysts. The OCS segment, now targeting a $4B SAM by 2030, has doubled its market opportunity in one year due to expanded use cases, including AI training environments that benefit from software-defined topology reconfiguration.
Coherent’s liquid crystal OCS, operating at 10V versus 100–200V for MEMS competitors, offers higher reliability with no moving parts and is already deployed with over ten customers, with larger 512 x 512 systems in development. CPO represents the largest incremental opportunity, projected at $15B+ SAM by 2030, with Coherent uniquely covering the entire bill of materials in-house, including Silicon Photonics, VCSEL lasers, optical engines, ELS, TEC, and other critical components.
The technology supports greater power efficiency and bandwidth as data rates increase, and three parallel paths—Silicon Photonics, VCSEL, and InP-based CPO engines—demonstrate flexibility and scale potential. Revenue ramps for CPO are planned for H2 2026 (Scale-Out) and H2 2027 (Scale-Up). With a clear roadmap, multiple high-margin growth vectors, and proven technology in revenue-generating systems, Coherent is positioned for significant expansion, offering investors both near-term catalysts and substantial long-term upside.
Previously, we covered a bullish thesis on Wolfspeed, Inc. (WOLF) by Moist-Clerk in October 2024, highlighting leadership in silicon carbide and gallium nitride, Mohawk Valley Fab expansion, and EV and renewable energy exposure. WOLF’s stock has appreciated approximately 62.43% since coverage. FundaAI shares a similar view but focuses on Coherent Corp.’s (COHR) multi-vector growth in optical communications with $20B incremental SAM and clear technology-driven revenue catalysts.
Coherent Corp. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 109 hedge fund portfolios held COHR at the end of the fourth quarter which was 78 in the previous quarter. While we acknowledge the risk and potential of 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 COHR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
