Coherent shares drop 7.5% despite $50 million government funding deal

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โดย Yahoo Finance·Read original

Summary · why it matters

Coherent shares fell 7.5% on Tuesday even after the company announced a letter of intent for up to $50 million in government funding to expand a manufacturing facility that supports optical networking gear for AI datacenters, tied to its partnership with NVIDIA. The decline outpaced the S&P 500's 0.6% dip and came alongside an 8.6% drop in peer LITE, suggesting a broader sector sell-off. The stock had previously surged from a low of $79.77 to a high of $426.89 over the past year, leaving it vulnerable to profit-taking on news that may have underwhelmed investors given Coherent's market capitalization above $72.8 billion. The company's fundamentals remain strong, with revenue growth accelerating to 18.0% and net margin reaching a three-year peak of 7.1%.