Coherent’s stock surged 5.02% over the past 24 hours, reflecting a powerful rally in the optical communications sector. The company, a key participant in photonics and optical interconnect solutions for AI infrastructure, saw heightened investor interest following the launch of a new sector-focused ETF and ongoing policy developments.

The Roundhill Optical Communications ETF officially began trading and rallied nearly 3% after its debut, lifting the broader sector and drawing increased capital flows to names like Coherent. Simultaneously, the U.S. Federal Communications Commission’s proposed ban on imports of new Chinese optical transceiver modules continued to reinforce the domestic substitution thesis, providing an additional tailwind for the stock.

Further fueling the positive momentum, Coherent is scheduled to report its fourth fiscal quarter earnings soon. Consensus estimates project revenue of approximately $1.986 billion, representing 31.65% year-over-year growth, and adjusted EPS of approximately $1.62, up 76.71% year-over-year. Institutional sentiment remains broadly positive heading into the report.