Coherent Corp. (NYSE:COHR) saw its stock rise 3.3% on Friday after the company announced progress in silicon carbide epitaxy and benefited from stronger sector sentiment tied to peer demand outlooks.
The company said it has developed thick epitaxy capabilities for silicon carbide that enable power devices up to 10kV for applications in AI datacenters and industrial power systems. Its 150mm and 200mm thick epitaxy platforms are described as supporting device architectures up to 10kV in production, and Coherent reported that it has demonstrated capability beyond 10kV.
The firm positioned the technology as a response to expanding demand for efficient, higher-voltage power systems across multiple markets. The announcement highlighted target markets including renewable energy, rail, fast-charging infrastructure and grid infrastructure. Coherent also pointed to AI datacenters as an area where improved conversion efficiency can reduce energy consumption and operating costs.
"Our new thick epitaxy capability for multi-kilovolt SiC devices enables customers to achieve higher efficiency and power density in critical applications such as energy infrastructure, high-capacity uninterruptible power supplies, and advanced power distribution systems in AI datacenters," said Gary Ruland, Senior Vice President, Silicon Carbide LLC.
Investor sentiment was further supported by a Reuters and industry-following narrative in which Bloomberg reported that Lumentum expects to sell out 2028 capacity within two quarters. That report bolstered confidence in the photonics sector and Lumentum shares rose about 1% on Friday, lifting sentiment for peers including Coherent.
On the analyst front, TD Cowen's Joshua Buchalter increased his price target on Coherent to $340 from $330 while maintaining his rating.
Coherent emphasized that it is expanding its silicon carbide technology portfolio from substrates to advanced epitaxy to support customers across industrial, automotive and energy markets, including applications for higher-efficiency datacenter power systems.
Market participants reacted to the technical update and sector momentum, while analysts reflected the developments in coverage. The company did not disclose new customer orders in the announcement.