New York, March 2, 2026, 18:14 EST — Trading extends into after-hours.
Coherent Corp. jumped 15.4% to $298.91 in Monday’s after-hours session, boosted by news that Nvidia is putting $2 billion into the company and has locked in a multi-year supply deal for advanced optics used in AI data centers. Earlier, the stock reached as high as $304.
Nvidia described the agreement as nonexclusive, locking in a multibillion-dollar purchase commitment and future rights to access and capacity for cutting-edge laser and optical networking gear. CEO Jensen Huang said the company is “pioneering next-generation silicon photonics” in partnership with Coherent, aiming to ramp up what it refers to as AI factories. NVIDIA Newsroom
Photonics — think data moving by light instead of electricity — is getting fresh attention as AI workloads push data centers up against their power and bandwidth ceilings. Nvidia’s step here turns the focus to optical transceivers, lasers, and the circuit switches hidden behind racks, linking chips together.
Coherent (NYSE: COHR) disclosed in a filing that it sold 7,788,161 shares to Nvidia at $256.80 apiece, pulling in $2 billion cash via a private placement — sidestepping standard SEC registration. The document also noted Nvidia will now get access to five more Coherent product families related to co-packaged optics, technology that integrates optical links closer to the chip package.
Nvidia inked another multi-year optics deal—this time with Lumentum—and committed $2 billion to back manufacturing and boost capacity in the U.S. Lumentum jumped 11.8%, while Nvidia traded up 3.0% late Monday.
Coherent’s announcement followed a robust quarterly update in early February. The company posted second-quarter fiscal 2026 revenue of $1.69 billion, marking a 17% year-on-year jump and stronger profit. Management has emphasized rising demand in both data center and communications markets.
Still, the companies ran through the standard list of warnings: the agreement or partnership might change or even fall apart, and the project could rack up surprise expenses—think lawsuits or fallout with existing partners. Investors can’t ignore the details. Those purchase commitments and capacity rights? No promise they’ll translate into flawless production or keep margins steady.
Investors are eyeing Coherent’s Technology Innovation Briefing at the Optical Fiber Communication conference in Los Angeles on March 17, hoping to get fresh details on product road maps and capacity plans. CEO Jim Anderson, along with other company leaders, is set to present and take questions.
