Fabrinet FN

Zacks Investment Research 13 nov

Coherent Corp. (COHR) demonstrated notable profitability improvements in Q1 FY27, with non-GAAP gross margin expanding 184 basis points to 40.6% and operating margin increasing 368 basis points to 23.2%. Non-GAAP EPS surged 80% year-over-year to $2.09, driven by stronger operational execution and improved cost efficiency. The stock has gained 61% over the past year and currently carries a Zacks Rank #2 (Buy) rating.

Zacks Investment Research 11 nov

Coherent Corp. (COHR) shares gained 10% following fiscal Q1 2027 earnings that beat expectations with adjusted EPS of $2.09 and record revenues of $2.37 billion. Datacenter revenues surged 85% year-over-year, driving 82% of total revenues, while gross margins expanded and operating efficiency improved. The company projects fiscal 2027 pro forma revenue growth exceeding 60% and expects quarterly revenues to reach $3 billion by end of fiscal 2027 and $4 billion in fiscal 2028, supported by strong AI infrastructure demand and a $20 billion five-year customer agreement.

Zacks Investment Research 11 nov

Despite recent market volatility and a significant tech selloff following midterm election results, analysts recommend buying AI stocks as demand continues to exceed supply. Four semiconductor and networking companies are highlighted as having strong growth potential despite current market concerns about data center spending.

Zacks Investment Research 10 nov

Following a significant market decline in AI stocks triggered by election results and concerns over data center spending, analysts recommend buying Arista Networks, Fabrinet, Analog Devices, and Advanced Micro Devices. Despite recent volatility, these companies benefit from continued strong AI demand exceeding supply, with expected earnings growth ranging from 40% to 82.5%.

Zacks Investment Research 3 nov

Applied Optoelectronics (AAOI) is expected to report Q3 2026 revenues of $255-290 million with earnings of 11-26 cents per share, driven by strong demand for 800G and 1.6T optical transceivers for AI infrastructure and data centers. The company benefits from manufacturing capacity expansion and in-house laser production, but faces headwinds from component shortages, competition, and stretched valuation. AAOI carries a Zacks Rank #3 (Hold) rating.