Coherent shares rose more than 6% on Monday. The gain followed a broader market recovery for semiconductor and AI-related firms.
Investors cited a strategic partnership with NVIDIA announced in March 2026. NVIDIA provided a $2 billion equity investment under the deal terms.
The agreement includes a purchase commitment for optical components valued at several billion dollars. This contract spans multiple years. Coherent serves as a critical supplier of networking technology for next-generation AI data centers.