Coherent Inc. shares rose 1% to 1.7% in overnight trading. This increase reflected a broader trend among photonics stocks.
Alphabet announced a $15 billion increase in its 2026 capital expenditures forecast. The company plans to use these funds primarily for building new data centers.
The announcement fueled expectations of stronger demand for AI infrastructure components. Coherent supplies lasers, optical transceivers, and other networking components for data centers. Such suppliers are expected to benefit significantly from increased tech spending.