Movement Alert|Coherent Falls 3.05% in Regular Trading, Optical Communications Sector Under Pressure for Fourth Consecutive Session on AI Demand Concerns

Market Focus
Sep 25

On September 25, Coherent fell 3.05% in regular trading, trading at $291.275/share, with turnover of $941 million, extending losses for a fourth consecutive session.

On the news front, the broader optical communications sector has been weighed down by growing concerns over a potential slowdown in AI computing power demand. Peers including Corning, Credo, and Astera Labs have declined in tandem, with Corning down 0.16% and Vishay Intertechnology down 2.30% in the same session. Over the past four trading days, multiple names including Coherent, Corning, SanDisk, and SK Hynix have each posted cumulative declines exceeding 3%, suggesting sector-wide selling pressure remains undigested.

Notably, Coherent recently launched its PhotonLink integrated optics platform and expanded its pluggable optical line system portfolio for AI data centers, while Deutsche Bank initiated coverage with a top-pick designation. However, these company-level positives have failed to offset sector-wide risk aversion driven by fears that AI infrastructure spending may be peaking. Market concerns also persist around the sector's elevated valuation — approximately 77x TTM P/E — and the potential for supply-demand dynamics to reverse beyond mid-decade.

(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.)

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