On June 24, Coherent fell 3.55% in regular trading, trading at $378.785/share, with turnover of $261 million. The decline extends the previous session's steep losses as the broader AI and optical communication sector continues to face heavy selling pressure.

The ongoing selloff was triggered by investors reassessing the high valuations of AI-related stocks and questioning whether hyperscale cloud companies can justify their massive AI capital expenditures. Goldman Sachs strategist Chris Hussey warned that if any major tech giant cuts AI spending first, the entire AI sector's valuation framework could face a comprehensive re-rating. Meanwhile, Bank of America Securities projected the Federal Reserve will cumulatively raise rates by 75 basis points between September and December, a shift from prior rate-cut expectations that further pressured growth stocks.

The Philadelphia Semiconductor Index plunged 7.87% in the prior session, while optical communication peers including Credo and Corning fell over 10% and 8% respectively. Despite a recent JPMorgan endorsement confirming strong data center order demand and reaffirming an overweight rating, Coherent has been swept up in the sector-wide de-risking as the VIX surged over 12%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)