Coherent Stock Deep Dive: Is COHR a Buy in 2026?

Coherent just reported 27% pro forma revenue growth — and NVIDIA handed them a $2 billion check. Here's what that really means for COHR investors. Coherent Corp (COHR) is quietly becoming one of the most important infrastructure plays in AI. In this deep dive, CSI breaks down Coherent's latest quarterly results, including 27% pro forma revenue growth, gross margins approaching the critical 40% threshold, and a dramatic pivot away from industrial end markets toward data center and optical connectivity — now 75% of revenue, up 41% year-over-year. We cover the logic behind Coherent's ongoing divestitures (aerospace & defense, materials processing), why Jim Anderson's operational playbook from Lattice Semiconductor is relevant here, and what the $2 billion NVIDIA equity investment actually signals about co-packaged optics and optical circuit switches as next-generation AI infrastructure. We also tackle the hard questions: negative free cash flow, the capital-intensive manufacturing scale-up ahead, and what the silicon carbide business — backed by Denso and Mitsubishi Electric — means for data center power infrastructure. Is COHR a buy at current levels, or does the market need to see profitability improve first? Semi Insider members get access to CSI's research platform and tools plus deeper research as it happens. Join at https://chipstockinvestor.com/ 📺 Watch our related video — we called this back in May:    • Nvidia Invested $2B in Lumentum — We Shoul...   🔗 Full research + stock tools: https://chipstockinvestor.com Get 15% of your membership with our special link here: https://fiscal.ai/csi 🎧: https://podcasters.spotify.com/pod/show/ch... If you found this video useful, please make sure to like and subscribe! Chapters: 0:00 - Why Optical Connectivity Is Having Its Moment 1:15 - What Coherent Actually Does (IDM + Base Materials) 2:30 - The Divestiture Strategy: Cutting Loose the Dead Weight 4:26 - Silicon Carbide: The Hidden Data Center Power Play 6:51 - NVIDIA's $2B Investment — What It Really Signals 7:45 - Balance Sheet Reality: Cash, Debt, and Negative FCF 09:23 - Guidance Breakdown: $2B Revenue and Margin Expansion 10:14 - COHR vs. LITE: Value Play or Value Trap? 10:32 - Our Thesis: What We're Watching in H2 2026 ******************************************************* Affiliate links that are sprinkled in throughout this video. If something catches your eye and you decide to buy it, we might earn a little coffee money. Thanks for helping us (Kasey) fuel our caffeine addiction! Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal. Nick and Kasey own shares of Coherent #chipstockinvestor #SemiconductorStocks #AIInfrastructure #OpticalNetworking #DataCenter #CoherentCorp #COHR #SemiconductorStocks