A Seeking Alpha analyst reiterated a "Buy" rating on Coherent Inc. The stock experienced a roughly 34% decline from its recent highs. This drop does not reflect the company's performance. It is part of a broader market sell-off impacting AI and semiconductor stocks. Concerns over high valuations and sustained capital spending fueled this sell-off.
The analyst notes Coherent's fundamentals remain strong despite share price volatility. The company reported record revenue of $1.81 billion in its fiscal third quarter. This marks a 21% year-over-year increase. Robust demand from AI data center customers drove this growth. A strong order book, its technology roadmap, and a partnership with Nvidia support the positive outlook.