On September 22, Coherent fell 3.12% in pre-market trading, trading at $311.16/share, with turnover of approximately $7.05 million, as the entire optical communication sector came under selling pressure.

On the news front, the broader optical communication sector declined in pre-market trading, with AXT Inc down nearly 3%, Coherent and Credo Technology down over 2%, and Lumentum, Corning, Applied Optoelectronics, and Astera Labs down over 1%. The sector-wide retreat reflects lingering concerns over a potential slowdown in AI infrastructure capital expenditure after multiple AI industry leaders recently called for moderating the pace of frontier model development, prompting markets to reassess near-term hyperscaler spending trajectories.

Notably, Coherent had posted gains in the prior session after unveiling new optical technologies and the PhotonLink integrated optical platform at the ECOC conference, while Deutsche Bank initiated coverage with the stock as a top pick. However, these company-level catalysts have been unable to offset the broader risk-off sentiment gripping the AI hardware supply chain, as investors reduce exposure amid uncertainty over 1.6T and next-generation optical module procurement timelines.

(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.)