Coherent shares fell as much as 11% during trading. Peer companies including Applied Optoelectronics and Lumentum also recorded significant stock declines.
A report from SemiAnalysis triggered the sell-off by suggesting potential delays for co-packaged optics (CPO). This technology is designed to help future AI data centers manage increasing data loads with higher efficiency.
Nvidia disputed the report's claims regarding the adoption timeline. An Nvidia executive stated the company is prepared to ship CPO products and expects to ramp up production in the second half of the year.