Nvidia invested $2 billion in Coherent Corp. on March 2, acquiring 7,788,161 shares at $256.80 each through a private placement, accompanied by a multi-year non-exclusive strategic partnership focused on optical technologies for AI data centers. This amount is part of a broader spending spree exceeding $6.5 billion allocated to photonics and optics suppliers since March 2026, including a matching $2 billion investment in Lumentum. The investment targets silicon photonics and co-packaged optics to solve bandwidth, latency, and energy efficiency issues facing traditional copper interconnects. Coherent plans to quadruple indium phosphide wafer production at its Texas facility with an investment of approximately $650 million supported by the CHIPS Act. The company reported record Q3 FY2026 revenue of $1.81 billion with 41% year-over-year growth in its Data Center and Communications segment.
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