Coherent CEO Jim Anderson joined a U.S. business delegation to China to resolve export license delays for indium phosphide (InP). This material is essential for high-speed optical chips used in AI data centers. Senior U.S. and Chinese trade negotiators reportedly discussed the licensing issue during recent talks.
The supply chain friction occurs as Coherent’s stock has declined nearly 20% from its early June peaks. Analysts attribute the drop to concerns over adoption timelines for new optical technologies and a lack of summer catalysts.
JPMorgan analysts maintained an Overweight rating on the stock despite the recent downturn. The firm suggests the price drop offers a buying opportunity based on long-term demand for Coherent’s technology.