What Happened?
Shares of materials and photonics company Coherent (NYSE: COHR) jumped 3.8% in the afternoon session after sentiment in the semiconductor sector improved as industry giant Taiwan Semiconductor Manufacturing Co. (TSMC) posted strong quarterly results and raised its full-year sales forecast. TSMC, the world's largest chipmaker, announced that its net profit surged by nearly 40% in the last quarter, reaching a record high. The company attributed this growth to the boom in artificial intelligence. Looking ahead, TSMC upgraded its 2025 sales forecast, expecting growth of almost 35 percent, up from a previous estimate of 30 percent. This positive outlook from a key industry leader signaled robust demand across the semiconductor market, lifting related stocks.
After the initial pop the shares cooled down to $114.55, 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 42 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 2 days ago when the stock dropped 3.5% as new export controls on critical minerals from China raised investor concerns about the stability of the company's global technology supply chain. The move by China created worries about potential risks to Coherent's production continuity, as the company has significant exposure to Chinese supply chains. Adding to the negative sentiment, the Pomerantz Law Firm announced it was investigating claims on behalf of investors concerning whether the company had engaged in unlawful business practices. These headwinds appeared to overshadow positive news, as Rosenblatt analyst Mike Genovese maintained a 'Buy' rating on the stock and raised the price target from $135 to $150.
Coherent is up 13.9% since the beginning of the year, and at $114.55 per share, it is trading close to its 52-week high of $122.35 from October 2025. Investors who bought $1,000 worth of Coherent’s shares 5 years ago would now be looking at an investment worth $2,491.
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