Coherent announces multi-year partnership with NVIDIA involving a US$2b investment focused on optical component supply and U.S. manufacturing capacity for AI datacenter demand.

Coherent (NYSE:COHR) and NVIDIA agreed to a multi-year partnership that includes a planned US$2b investment. The agreement focuses on expanding optical component supply, research and development, and U.S. manufacturing capacity tied to growing AI-driven demand for datacenter and communications products.

Coherent operates in optical and laser technologies used in high-speed communications, AI compute, and advanced manufacturing. The partnership links the company's product set directly to NVIDIA's major role as an AI hardware provider as datacenters scale to handle larger AI workloads.

Stock valuation shows mixed signals: trading roughly in line with the US$380.62 analyst price target, but about 27.1% above Simply Wall St's estimated fair value. The stock is up 12.3% over the last 30 days, though a P/E of 184.4 compares with an industry average of about 30.