BofA Hikes Coherent Price Target to $400 on $1.7 Trillion AI Data Center Forecast

Bank of America conscionable nudged its people connected Coherent (NYSE:COHR) banal higher, lifting the terms people to $400 from $365 portion maintaining a Neutral rating. The catalyst: Bank of America raised its calendar 2030 AI information halfway systems full addressable marketplace to astir $1.7 trillion from $1.4 trillion, a thematic displacement that besides drove same-day terms people hikes connected respective AI infrastructure names. For Coherent stock, the connection is incremental upside, not a high-conviction call.

The expert upgrade highlights however cardinal optical components person go to the AI buildout, adjacent arsenic Coherent signals that valuation already reflects overmuch of the bull case.

The Analyst's Case

Bank of America's thesis hinges connected a bigger AI infrastructure pie. The steadfast asserted that 2026 volition proceed to beryllium a twelvemonth of accelerating AI income and returns connected investment, with 2027 perchance seeing improving tokenomics and ratio arsenic caller compute and representation architectures ramp.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Coherent wasn't 1 of them. Get them present FREE.

For Coherent specifically, optical components are captious plumbing wrong AI information centers. As GPU clusters standard into the hundreds of thousands of accelerators, fibre optic connectivity handles the high-bandwidth, long-reach information question that copper cannot.

Company Snapshot

Coherent is simply a diversified photonics and laser supplier (formerly II-VI) serving information center, communications, and concern markets. The Datacenter & Communications conception generated $1.361 cardinal successful fiscal Q3 2026, up 41% twelvemonth implicit year, and present represents 75% of full revenue.

Coherent's Q3 FY2026 gross of $1.805 cardinal grew 21% twelvemonth implicit year, with non-GAAP EPS of $1.41. CEO Jim Anderson stated that "As AI datacenter infrastructure continues to scale, we are rapidly expanding capableness to conscionable demand." The institution has besides benefited from NVIDIA's $2 cardinal concern supporting U.S. manufacturing.