Coherent's Optical Chips Drive 23% Revenue Growth in AI-Driven Data Centers

Coherent's optical transceivers enable faster data transfer in data centers as AI demand outgrows copper wiring. Revenue rose 23% in fiscal 2025 as cloud and AI infrastructure upgrades drive adoption of its fiber-optic components. The stock surged 400% to $399.33, outperforming Nvidia's 49% gain. Coherent's optical business accounts for most revenue and has a 37.93% gross margin.