Coherent rose by more than 4% in pre-market trading, and construction on the expansion of the Texas factory has started, which will expand the indium phosphide production line.

Coherent, the leader in optical communication, rose more than 4% in pre-market trading, reaching a high of $398.4 at one point; as of the time of writing, the stock has narrowed its gains to 2.4%, trading at $392. On the news front, on June 16th, Coherent held a groundbreaking ceremony for a new factory in Sherman, Texas, officially kicking off the expansion of its manufacturing base. Jensen Huang, founder and CEO of NVIDIA, and Jim Anderson, CEO of Coherent, both attended the event, emphasizing once again the core role of optical interconnection in AI infrastructure. This expansion aims to increase the production capacity of 6-inch indium phosphide wafers, providing crucial manufacturing support for high-speed optical communication devices. Additionally, the company announced that it has signed a letter of intent to receive up to $50 million in direct funding from the U.S. Department of Commerce under the "CHIPS Act" to expand its production facilities.