On August 5, Coherent rose 4.41% in pre-market trading, trading at $330.0/share, with turnover of $2.0753 million. The stock extended its strong momentum following the prior session's nearly 12% surge.

On the news front, the U.S. Federal Communications Commission is drafting measures to ban imports of new-model Chinese optical transceiver modules used in high-speed data center fiber communications, with officials aiming to announce and implement the ban within the year. The policy is intended to protect critical AI data center infrastructure. This directly fuels domestic substitution expectations for U.S.-based optical communications manufacturers.

Coherent, as a core supplier in the AI infrastructure optical interconnect segment, derives over 70% of its revenue from data center and communications businesses. Additionally, the company is set to report fourth fiscal quarter earnings on August 12, with consensus estimates projecting revenue of approximately $19.86 billion, up 31.65% year-over-year, and adjusted EPS of approximately $1.62, up 76.71% year-over-year. The combination of policy tailwinds and robust earnings growth expectations continues to drive share price strength.

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