Coherent’s $10B 2027 Revenue Path: How a Quiet Optics Company Is Becoming the AI Data Center Backbone

3 months ago

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"COHR: Makes fiber-optic transceivers/lasers connecting AI GPUs in datacenters. Datacenter/networking rev +39% YoY, 60% of total. Est $2.1-2.8B 2026-27 rev potential from hyperscale buildouts alone. Upgrade cycles from 400ZR→800ZR→1.6T match GPU roadmap. Base case: 2026 $8.4B rev (+35%), 2027 $11B (+32%) at 40% gross margins = ~$8-14 EPS, trading 7.5-13x P/E."

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