Nvidia invested US$2.0 billion in Coherent and took an equity stake to back expansion of indium phosphide optics for AI data centers. Coherent's AI optical transceiver demand is booked out through 2028.
Coherent's narrative projects US$18.3 billion revenue and US$2.3 billion earnings by 2029, requiring 40.4% yearly revenue growth and about a US$1.9 billion earnings increase from US$400.6 million today. The most bullish analysts project Coherent reaching about US$9.4 billion in revenue and US$1.4 billion in earnings by 2028.
The partnership ties directly to scaling high-speed datacom (optical networking for data centers) revenue and margin, but investors must weigh execution risk around large, capital-intensive capacity builds and the risk that hyperscaler spending or transceiver architectures eventually shift away from Coherent's strengths.
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