Coherent Corp. (COHR): A Critical Player in AI Data Center Buildouts

Baron Capital's second-quarter 2026 investor letter for its Baron SMID Cap ETF highlights Coherent Corp. (NYSE:COHR) as a significant contributor to the fund's performance. Coherent Corp., which specializes in manufacturing and marketing engineered materials, optoelectronic components, devices, and laser systems, plays a crucial role in data center applications, industrial, and communications sectors.

The company's lasers are utilized in high power manufacturing, cutting, semiconductor manufacturing, scientific research, and defense markets. Baron SMID Cap ETF, however, does not include Coherent Corp. on its list of the 40 Most Popular Stocks Among Hedge Funds, preferring other AI stocks with potentially higher upside potential and lower risk.