NVIDIA announced a $2 billion investment in Coherent Corp., a photonics company that supplies high‑speed optical components for AI data centers. The deal establishes a multiyear strategic partnership that will fund research and development, expand manufacturing capacity, and secure future access to Coherent’s advanced laser and optical networking products.
Coherent reported record revenue of $5.81 billion for fiscal year 2025, a 23% year‑over‑year increase, and a non‑GAAP earnings per share of $3.53. In the first quarter of fiscal year 2026, the company generated $1.58 billion in revenue, up 17% from the prior year, and reported a non‑GAAP EPS of $1.16. NVIDIA’s fourth‑quarter fiscal year 2025 revenue reached $39.3 billion, up 78% from the previous year, underscoring the rapid growth of both firms in the AI infrastructure space.
The investment reflects NVIDIA’s strategy to deepen vertical integration and secure critical components for its AI platforms. By partnering with Coherent, NVIDIA gains priority access to high‑bandwidth, energy‑efficient optical interconnects that are essential for scaling next‑generation AI data centers. For Coherent, the capital infusion supports expansion of its U.S. manufacturing footprint and accelerates development of new laser and photonic products, while the company continues to focus on high‑margin AI‑centric markets after divesting non‑core assets.
Jensen Huang, NVIDIA’s CEO, said, "Computing has fundamentally changed. In the age of AI, software runs on intelligence with tokens generated in real time by AI factories for every interaction and every context. With Coherent, NVIDIA is pioneering next‑generation silicon photonics to enable AI infrastructure at unprecedented scale, speed and energy efficiency." Jim Anderson, Coherent’s CEO, added, "This strategic relationship underscores Coherent's role as a key enabler of next‑generation AI data center infrastructure. We are proud to expand our 20‑year relationship with NVIDIA by increasing their access to multiple product families to help them build the AI data centers of the future."
Investors responded positively to the announcement, citing the investment as a sign of NVIDIA’s commitment to AI infrastructure and Coherent’s strong earnings and growth trajectory. Analysts upgraded the company, reflecting confidence in the AI optical thesis.
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