AI optical transceivers · silicon photonics

Coherent

A key supplier of AI-datacenter optical-networking components (transceivers, lasers). FY2025 revenue $5.78B (+23%), led by datacenter and communications. Ramping 1.6T transceivers (silicon photonics, EML, VCSEL). NVIDIA invested $2B and committed multi-billion purchases of its lasers and optical-networking products.

COHR Updated Jul 12, 2026 4 AI consumers· 3 recurring

Per the valuechain.wiki graph, Coherent is directly linked to 7 companies (3 supply, 4 revenue, 2 investment relationships) and reaches 73 companies within two hops; the links are backed by 14 dated sources, 3 of them primary filings (as of 2026-07-12).

Annual return · 2026-07-10'21-10%'22-48.6%'23+24%'24+117.6%'25+94.8%YTD+75.8%
Money in ▸NVIDIA●Mitsubishi Electric (SiC wafer supply)●hyperscalers · telecom (optical transceivers)◐InnoLight◐Eoptolink◐
CoherentFY2025 revenue $5.78B
▸ Money outFabrinet●Tower Semiconductor●MACOM Technology●R&D engineers (undisclosed)○compound semiconductors & optical materials (undisclosed)○

Financials & Segments

  • Total revenue · FY2025 revenue $5.78B (+23%)
  • Customer concentration · Driven by AI-datacenter transceiver demand.
  • Segments · Datacenter/comms optics · Lasers/materials

Revenue from

  • NVIDIA High confidence
    NVIDIA is the anchor that pre-commits Coherent's optics demand — a $2B investment and multi-billion purchase commitment lock in 1.6T transceiver/laser volume, the core of Coherent's revenue visibility.
    Confirms EN Coherent Published Mar 2, 2026: NVIDIA and Coherent Announce Strategic Partnership to Develop Optics Technology to Scale Next-Generation Data Center Architecture
    Confirms KO Ledesk Published Jan 1, 2026: Optical networking, essential to fully use AI chips
    Confirms EN SEC EDGAR Published Nov 1, 2025: Coherent quarterly report (10-Q)
  • Mitsubishi Electric (SiC wafer supply) High confidence
    Its SiC subsidiary (Silicon Carbide LLC) supplies Mitsubishi Electric with 150mm/200mm SiC substrates and epi wafers under a long-term arrangement tied to the 2023 investment.
    Confirms EN Coherent Published Dec 4, 2023: Coherent's Silicon Carbide Business Completes $1B in Investments From DENSO and Mitsubishi Electric
    Confirms KO KIPOST Published Oct 11, 2023: Denso, Mitsubishi Electric invest $1B in Coherent's SiC business
  • hyperscalers · telecom (optical transceivers) Medium confidence
    Hyperscalers and telecoms source DCI and telecom optical transceivers — the core demand tied to the AI capex cycle.
    Confirms EN LightCounting Published Mar 1, 2026: Sales of optical transceivers reached $23.8 billion in 2025
    Confirms KO Ledesk Published Jan 1, 2026: Optical networking, essential to fully use AI chips
    Confirms KO Newspim Published Oct 27, 2025: OE Solutions localizes core parts for Coherent AI-datacenter transceivers
  • InnoLight Medium confidence
    InnoLight is both a transceiver customer and a finished-module rival — Coherent supplies the key EML laser, a dual structure where component sales ride on a competitor's volume.
    Mentions EN Photon Capital Published Apr 18, 2026: Five companies dominate the EML market
    Confirms EN IP-Fiber (Baudcom) Published Nov 11, 2025: Nvidia Orders Surge: InnoLight and Eoptolink Dominate 60% of 800G Supply
  • Eoptolink Medium confidence
    Supplies EMLs for Eoptolink transceivers — a component-revenue axis selling the key laser to a finished-module rival.
    Mentions EN Photon Capital Published Apr 18, 2026: Five companies dominate the EML market
    Confirms EN Eoptolink/SZSE Published Mar 1, 2026: Eoptolink company/IR (SZSE)

Pays to

  • Fabrinet High confidence
    Outsources optical-module manufacturing to Fabrinet.
    Confirms EN MatrixBCG Published Jan 1, 2026: Fabrinet contract-manufactures optics for NVIDIA, Cisco, AWS, Lumentum
    Confirms EN SEC EDGAR Published Aug 18, 2025: Fabrinet FY2025 results (8-K)
  • Tower Semiconductor High confidence
    Sources SiPho/SiGe from Tower foundry for transceivers.
    Confirms EN TipRanks Published Nov 10, 2025: Tower bets big on photonics (No.1 SiPho for transceivers)
  • MACOM Technology High confidence
    Sources laser drivers/TIAs from MACOM for transceivers.
    Confirms EN Converge Digest Published Jan 1, 2026: MACOM revenue jumps 23% as AI optical demand accelerates
  • R&D engineers (undisclosed) Low confidence
    Silicon-photonics/optics R&D.
    Confirms KO Ledesk Published Jan 1, 2026: Optical networking, essential to fully use AI chips
  • compound semiconductors & optical materials (undisclosed) Low confidence
    Compound-semiconductor materials (InP/GaAs) and in-house fabs.
    Confirms EN SEC EDGAR Published Nov 1, 2025: Coherent quarterly report (10-Q)

Investors

  • NVIDIA High confidence
    NVIDIA invests $2B in Coherent (optics alliance).
    Confirms EN Coherent Published Mar 2, 2026: NVIDIA and Coherent Announce Strategic Partnership to Develop Optics Technology to Scale Next-Generation Data Center Architecture
    Confirms KO Ledesk Published Jan 1, 2026: Optical networking, essential to fully use AI chips
  • Mitsubishi Electric (12.5% SiC stake) High confidence
    Mitsubishi Electric holds a $500M / 12.5% non-controlling stake in the SiC subsidiary (Silicon Carbide LLC), matched by DENSO; closed Dec 2023.
    Confirms EN Coherent Published Dec 4, 2023: Coherent's Silicon Carbide Business Completes $1B in Investments From DENSO and Mitsubishi Electric
    Confirms KO KIPOST Published Oct 11, 2023: Denso, Mitsubishi Electric invest $1B in Coherent's SiC business

Value-chain ripple (2 tiers)

Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.

CompanyChain'21'22'23'24'25YTD
Dell Technologieslead2+51.2-26.6+95.9+53+11.2+248.1
Lenovolead2-4.6-20.9+36.2+18.2-0.6+175.7
Hewlett Packard Enterpriselead2+37.4+4.5+9.7+29.1+15.5+104
TeraWulflead2+77.1-95.5+258.2+135.8+103+91.2
Aurora Innovationlead2·-89.3+261.2+44.2-39+66.1
Mercury Systemslead2-37.5-18.7-18.3+14.8+73.8+47.9
ASUSTeK Computerlead2+35.5-12.9+72+41.1-14.1+46.7
Wiwynnlead2+24.7-22.3+206.4+3.5+64.4+45.1
Gigabyte Technologylead2+82.3-3.4+173.2-15.9-4.7+44.4
Cloudflarelead2+73-65.6+84.2+29.3+83.1+36.1
Quanta Computerlead2+22.2-12.8+254.5+12.7+8.9+33.4
SK Telecomlead2+7.9-12+15.8+15.5+37.5+23.4
Celesticalead2+37.9+1.3+159.8+215.2+220.3+21.7
Geely Autolead2-40.8-22.9-40.3+98.5+14.5+18.9
Wistronlead2+7.9+9.7+272.7-1.6+22.7+14.8
Alphabet (Google)lead2+65.3-39.1+58.3+36+66+14.3
Foxconn (Hon Hai)lead2-5.1+2.8+7.8+80.1+26.9+10.9
IRENlead2·-92.3+472+37.3+284.6+8.9
Amazonlead2+2.4-49.6+80.9+44.4+5.2+6.3
Meta Platformslead2+23.1-64.2+194.1+66+13.1+1.6
Tempus AIlead2····+74.9-1.4
IBMlead2+16.7+10.6+21.8+39.3+38.2-1.6
Super Microlead2+38.8+86.8+246.2+7.2-4-3.3
General Motorslead2+40.8-42.4+7.9+49.8+54.2-3.8
IonQlead2·-79.3+259.1+237.1+7.4-4.5
Hyundai Motor Companylead2-16.7-4.7+16.2+12.3+158.8-7.8
Teslalead2+49.8-65+101.7+62.5+11.4-9.3
Toyota Motor Corporationlead2+58.1-13.4+63+1.8+21.8-18.2
Microsoftlead2+52.5-28+58.2+12.9+15.6-20
Alibaba Grouplead2-49-25.8-10.8+11.8+75.8-22.7
Tencent Holdings Limitedlead2-28.6-14.2-28.7+49.8+52.1-23.2
Baidulead2·-8.2-23.4-13.5+74.2-24.5
Rigetti Computinglead2·-92.9+35.1+1449.2+45.2-25.3
Oraclelead2+36.9-4.6+30.9+60+18.1-27.4
Kratos Defenselead2-29.3-46.8+96.6+30+187.8-36.5
Pony.ailead2····+1-54.6
Eoptolinklead1-10.1-27.7+136.6+197+368.8+74.9
InnoLightlead1-30.7-18.3+253.7+12+468.1+68.8
Mitsubishi Electriclead1-8.1+2.5+58.7+19.1+91+21.3
NVIDIAlead1+125.5-50.3+239+171.2+38.9+13.3
Coherentnode-10-48.6+24+117.6+94.8+75.8
Mitsubishi Electricbenef1-8.1+2.5+58.7+19.1+91+21.3
NVIDIAbenef1+125.5-50.3+239+171.2+38.9+13.3
Kioxiabenef2····+1082.1+260.5
Micron Technologybenef2+24.2-45.9+71.9-1+240.2+243.3
Murata Manufacturingbenef2-14-11.7+24.7-16.5+29.9+217.4
Nan Ya PCBbenef2+110.6-46.7-0.5-38.3+188.2+213.4
ASE Technologybenef2+38.3-12.8+60.9+10.1+65.6+167.6
Nebius Groupbenef2····+202.2+162.4
Astera Labsbenef2····+25.6+148.2
Ibidenbenef2+30.4-19.6+51.6-38.6+261+147.1
SK hynixbenef2-0.4-25.6+53.9+48.6+361.1+140.3
Unimicronbenef2+133.5-30.2+35.2-19.7+175.7+131.6
Corningbenef2+5.9-11.6-1.2+60.6+87.8+118.8
Lumentumbenef2+11.6-50.7+0.5+60.1+339.1+117.6
Samsung Electronicsbenef2-9-14.2+20.9-26.4+212.9+77.9
onsemibenef2+107.5-8.2+33.9-24.5-14.1+77.2
Eoptolinkbenef2-10.1-27.7+136.6+197+368.8+74.9
InnoLightbenef2-30.7-18.3+253.7+12+468.1+68.8
Keysight Technologiesbenef2+56.3-17.2-7+1+26.5+58.5
Delta Electronicsbenef2-3.4+10.4-0.3+59.2+183.8+54.9
Monolithic Powerbenef2+35.5-27.8+79.8-5.6+54.5+49.8
Analog Devicesbenef2+21-4.9+23.4+8.8+29.8+46.7
TSMCbenef2+12.1-36.7+42.3+92.6+55.9+43.6
ABBbenef2+23.9+7.3+18.9+39+36.1+27.2
Pegatronbenef2-5.9+0.6+35.3+21.2-23.8+24
Luxshare Precisionbenef2-11.9-30.2-21.2+58.8+29.3+20.6
Digital Realtybenef2+30.7-41+39.9+35.9-10.1+18.2
Amphenolbenef2+34.9-12+31.5+41.3+96.1+18.1
Wistronbenef2+7.9+9.7+272.7-1.6+22.7+14.8
King Yuan Electronics (KYEC)benef2+26.7-7.7+132.4+38.6+171+4.2
BlackRockbenef2+29.4-20.4+17.9+29.3+6.6-2.1
TE Connectivitybenef2+35.1-27.7+24.6+3.5+61.1-11.3
Recursion Pharmaceuticalsbenef2·-55+27.9-31.4-39.5-13
BYD Electronicsbenef2-56.1+16-0.4+60.6-19.4-34.4

YTD as of 2026-07-10 · source: Yahoo Finance

A key supplier of AI-datacenter optical-networking parts (transceivers, lasers), directly exposed to hyperscaler optical-interconnect demand. The thesis is that the NVIDIA alliance ($2B investment, multi-billion purchase commitment) pre-commits demand while 1.6T transceivers (silicon photonics, EML) lead the generational shift — with a distinctive dual role of selling EMLs to customers-cum-rivals like InnoLight and Eoptolink. On the supply side, dependence on Tower, MACOM and Fabrinet drives cost and capacity, while the SiC subsidiary (with Mitsubishi Electric/DENSO stakes) is a separate growth option. Risks are the pace of transceiver generational change and the hyperscaler capex cycle.

Analysis generated from returns as of 2026-07-09

Analyst ratings

Consensus: Buy 4 · Hold 1 · Sell 0 · Avg. target $399 · Price $324.5 (07-10) · Upside +23%

BrokerRatingTargetPublished
Raymond James · Simon LeopoldStrong Buy$435Jul 2, 2026Report ↗
Stifel · Ruben RoyBuy$412May 11, 2026Report ↗
TD Cowen · Sean O'LoughlinBuy$395May 7, 2026Report ↗
Rosenblatt Securities · Mike GenoveseBuy$425May 7, 2026Report ↗
Morgan Stanley · Meta MarshallEqual Weight$330May 7, 2026Report ↗

Target $371→$435, Strong Buy kept; robust AI datacenter 800G/1.6T transceiver and InP/EML laser demand with a deep backlog.

Analyses covering this node

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