COHERENT's stock plummeted 5.07% during intraday trading on Tuesday, extending a period of volatility following a significant rally earlier in the month driven by major investment news.

The decline reflects ongoing profit-taking pressure that has not been fully resolved after the stock's sharp surge. COHERENT had previously rallied over 17% to hit a 52-week high after NVIDIA announced a $2 billion strategic investment in the company for photonic technology research and development and U.S. domestic manufacturing expansion. Following a multi-day correction, the stock rebounded strongly in the previous session as the optical communications sector recovered broadly, but renewed selling pressure emerged as short-term gains remained undigested.

Broader weakness across the optical communications space also contributed to the downward pressure, with sector peers showing declines. Despite NVIDIA's clarification of procurement rumors that supported a pre-market rebound, the market continued to exhibit caution regarding the sustainability of recent gains.