On October 2, Coherent rose 3.03% in regular trading, trading at $330.23/share, with turnover of $4.74 billion, extending the prior session's surge of over 10%.
On the news front, a Morgan Stanley research note following the FCC's final rule on communications supply chain security continued to drive bullish sentiment. Morgan Stanley identified Coherent and Lumentum as core U.S. domestic high-speed laser suppliers whose strategic positioning is significantly enhanced under the new regulatory framework. Peer stock Corning gained 1.75%, with the broader optical communications sector maintaining a firm tone.
In preceding sessions, Morgan Stanley had also noted after the European Conference on Optical Communication that multiple optical communications suppliers' capacity over the next 12 to 18 months is nearly sold out, with AI-driven optical demand remaining robust. The firm argued the sector's core focus is shifting from demand growth to capacity release and yield improvement supporting margin expansion. Additionally, Coherent recently launched its PhotonLink integrated optics platform and expanded its pluggable optical line system portfolio targeting 800G ZR/ZR+ modules for AI data centers.
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