Coherent (COHR) Becomes AI Powerhouse as Datacenter Sales Reach 72% of Revenue

Coherent (COHR) has successfully transitioned into a premium AI infrastructure provider, with its datacenter segment now accounting for 72% of total revenue. This significant growth is primarily fueled by the surging demand for high-speed optical transceivers and the strategic expansion of Indium Phosphide (InP) production. The company currently enjoys exceptional forward visibility, reporting that most of its production capacity for 2026 is already booked. Furthermore, Coherent's book-to-bill ratio has exceeded 4x, highlighting the massive demand for its technological solutions amid the global AI data center build-out. This transformation positions the company as a critical player in the semiconductor and optical networking sectors. While the market has partially priced in this shift, the concentration of revenue in high-growth segments underscores a strong long-term outlook.