Do You Believe in Coherent’s (COHR) Longer-Term Growth Opportunities?
Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”. A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like Coherent Corp (NYSE:COHR). Coherent Corp. (NYSE:COHR) manufactures and markets engineered materials, optoelectronic components and devices, and laser systems used across data center, industrial and communications applications. On February 23, 2026, Coherent Corp. (NYSE:COHR) stock closed at $248.89 per share. One-month return of Coherent Corp. (NYSE:COHR) was 16.30%, and its shares are up 226.93% over the past twelve months. Coherent Corp. (NYSE:COHR) has a market capitalization of $46.662 billion.
Artisan Mid Cap Fund stated the following regarding Coherent Corp. (NYSE:COHR) in its fourth quarter 2025 investor letter:
"Our top contributors in Q4 were Argenx, Coherent Corp. (NYSE:COHR) and Insmed. Coherent is a leading supplier of lasers and photonics solutions used across data center, industrial and communications applications. Recent earnings were solid, with results exceeding expectations and management highlighting strong demand for high-speed optical components supporting AI-driven data center growth, alongside improving margins. Management also expressed increased confidence in Coherent’s vertically integrated indium phosphide platform, which provides supply chain flexibility and a competitive advantage amid constrained industry capacity. Given the stock’s strong performance and valuation nearing the upper end of our assessed range, we trimmed the position during the quarter while maintaining conviction in the company’s longer term growth opportunities."
Coherent Corp. (NYSE:COHR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 107 hedge fund portfolios held Coherent Corp. (NYSE:COHR) at the end of the fourth quarter, up from 78 in the previous quarter. While we acknowledge the potential of Coherent Corp. (NYSE:COHR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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