Coherent at ECOC 2026: pushes full-stack optics for AI data centers

On September 21, 2026, Coherent Corporation, a leader in optical technology, unveiled PhotonLink at the European Conference on Optical Communication 2026 (ECOC 2026). This new platform aims to facilitate the transition from electrical to photonic connections in AI data centers, an opportunity Coherent believes is substantial and expanding.

Coherent acknowledged that customers are evaluating various architectures, including co-packaged optics (CPO), near-package optics (NPO), and chip-to-chip photonic interconnects. The company is targeting an additional $30 billion in market opportunity by 2030, bringing the total addressable market to $90 billion. Currently, Coherent's portfolio is valued at $60 billion by the end of 2030.

The company has engaged with more than 10 customers for CPO and NPO, and over 5 for chip-to-chip photonic interconnects, with anchor agreements for CPO and NPO, including NVIDIA. PhotonLink is designed as a complete optical solution, covering the entire signal path from generation to detection. The platform is organized into four key areas: Generate (laser sources), Shape (optical manipulation), Guide (fiber and routing), and Receive (detection).

Jim Anderson, Coherent's CEO, emphasized the ease of switching to photonic connections, offering customers a unified approach. The company's existing market is approximately $60 billion, and with PhotonLink, this could grow to $90 billion by 2030. Revenue growth of 23% over the past year supports this expansion, with analysts projecting a 49% increase in fiscal 2027.

Investors have reacted positively, with shares rising 191% over the past year and 72% year-to-date. The stock also surged 19% in the week following the PhotonLink announcement. Despite being labeled as potentially overvalued, momentum remains strong as Coherent executes on its photonics roadmap. The company's manufacturing capabilities, including four wafer fabrication sites and significant shipments of optical components, lasers, photodetectors, indium phosphide lasers, VCSEL arrays, fiber, and lenses, provide a strong foundation for this strategic move.