Coherent (COHR): Unmet Hyperscaler Demand Fuels Aggressive Capacity Expansion

Reaves Long Term Value Wrap Strategy reported a 10.55% increase for its strategy in its second-quarter 2026 investor letter, surpassing the MSCI USA Infrastructure Index's 6.31% decline. The company highlighted Coherent Corp. (NYSE:COHR) as a leading performance contributor due to its capacity expansion to meet unmet demand from hyperscalers.

Coherent Corp., which manufactures engineered materials, optoelectronic components, and laser systems, experienced a slight decline in its stock price on September 16, 2026, but has seen an 168.33% increase over the past year. The strategy noted that hyperscalers are driving demand, creating pricing power and enhancing margins through capacity ramp-ups.

Despite being absent from the 40 Most Popular Stocks Among Hedge Funds, Coherent Corp. held by 105 hedge fund portfolios at the end of Q2 2026, making it a potential investment with upside potential and less downside risk.