What Happened?

Shares of materials and photonics company Coherent (NYSE: COHR) jumped 2.9% in the morning session after the company unveiled two powerful new instruments designed to make testing advanced optical networks faster and more precise. 

The products, the WaveAnalyzer 200B and WaveShaper 500B/X, aimed to strengthen Coherent's competitive position in the photonics market. Notably, the WaveAnalyzer 200B was presented as the only battery-powered portable analyzer of its kind, capable of delivering rapid results. The positive company news landed in a receptive market, as a broader rally in tech stocks took hold after the U.S. Federal Reserve cut interest rates, making growth shares more attractive. 

Adding to the upbeat sentiment, Coherent also announced a multi-year partnership with Eudia to create a fully AI-native legal function, signaling further innovation within the company.

After the initial pop the shares cooled down to $107.23, up 3.7% from previous close.

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What Is The Market Telling Us

Coherent’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 3.8% on the news that the company launched its new WELD2D MP laser welding scanner, designed to redefine cost-performance standards for high-growth sectors. 

The new product is specifically aimed at critical applications in the fast-growing e-mobility (EV) and power electronics markets, such as foil-to-tab and thin busbar welding. By combining precision with a competitive price, Coherent aims to make advanced laser welding accessible to a broader customer base, potentially boosting sales volumes. The company stated its goal is to "democratize access to high-performance laser welding." The scanner is part of an expanded portfolio of laser solutions that demonstrates Coherent's commitment to innovation and solidifies its reputation as a leader in photonics, positioning it to better serve next-generation manufacturing challenges.

Coherent is up 6.6% since the beginning of the year, and at $107.23 per share, it is trading close to its 52-week high of $116.56 from August 2025. Investors who bought $1,000 worth of Coherent’s shares 5 years ago would now be looking at an investment worth $2,805.

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