Meta, Microsoft And Google Are Unleashing A $250 Billion AI Tsunami
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2025
0mins
Should l Buy COHR?
Source: Benzinga
AI Investment Surge: Major tech companies like Meta, Microsoft, and Alphabet are investing over $240 billion in AI infrastructure by 2026, indicating a significant shift towards building the foundation for the next industrial revolution.
Growth Potential: Analysts predict continued explosive growth in AI, with an expected $2 trillion in enterprise and government spending over the next three years, benefiting not only the tech giants but also lesser-known companies involved in AI infrastructure.
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Analyst Views on COHR
Wall Street analysts forecast COHR stock price to fall
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 274.860
Low
170.00
Averages
238.18
High
300.00
Current: 274.860
Low
170.00
Averages
238.18
High
300.00
About COHR
Coherent Corp., specializing in materials, networking, and lasers, is a vertically integrated manufacturing company that develops, manufactures, and markets engineered materials, optoelectronic components and devices, and lasers for use in the industrial, communications, electronics, and instrumentation markets. Its segments include Networking, Materials and Lasers. The Networking segment leverages its compound semiconductor technology platforms and knowledge of end-user applications for its key end markets to deliver differentiated components and subsystems. The Materials segment includes engineered materials and optoelectronic devices, such as those based on zinc selenide (ZnSe), zinc sulfide (ZnS), gallium arsenide (GaAs), indium phosphide (InP), gallium antimonide (GaSb), and silicon carbide (SiC). The Lasers segment's lasers and optics products serve industrial customers in semiconductor and display capital equipment, precision manufacturing, and aerospace & defense, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Supply Chain Assurance: Despite facing shortages in high-bandwidth memory, Tan assured analysts that the company has secured memory and leading-edge wafer supply through 2028, which will support ongoing growth and alleviate concerns about profitability.
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- Capacity Assurance: Tan confirmed that Broadcom has secured memory and leading-edge wafer supply through 2028, which will help alleviate the market shortage of high-bandwidth memory and enhance the company's competitive position in the AI market.
- Positive Market Reaction: Broadcom's stock surged about 5% on Thursday, reflecting investor confidence in the company's strong AI chip demand and better-than-expected quarterly results, with analysts estimating revenue of $12 billion to $15 billion per gigawatt by 2027.
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- Doubling AI Revenue: Broadcom's AI revenue has more than doubled due to demand for AI accelerators and networking, with CEO Hock Tan projecting that AI chip revenue will be 'significantly in excess of $100 billion' by 2027, far exceeding Wall Street's bullish estimates and indicating strong demand and growth potential in the AI market.
- Capacity Expansion: The company is nearing 10 gigawatts of capacity, with analysts estimating revenue of $12 billion to $15 billion per gigawatt by 2027, which is expected to drive substantial revenue growth and further solidify Broadcom's leadership position in the semiconductor industry.
- Supply Chain Assurance: Despite facing shortages in high-bandwidth memory, Tan assured analysts that the company has secured memory and leading-edge wafer supply through 2028, which will support ongoing growth and alleviate concerns about profitability.
- Competitive Market Advantage: Tan emphasized that Broadcom's AI chips offer cost and performance advantages over competitors like Nvidia, which is expected to attract more hyperscaler customers and ensure the company's market share and profitability in the coming years.
See More
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- AI Revenue Forecast: CEO Hock Tan projects that Broadcom's AI chip revenue will be “significantly in excess of $100 billion” by 2027, indicating a rapid growth in demand for custom silicon chips that could lead to sustainable revenue growth for the company.
- Capacity Assurance: Tan confirmed that Broadcom has secured memory and leading-edge wafer supply through 2028, which will help alleviate the market shortage of high-bandwidth memory and enhance the company's competitive position in the AI market.
- Positive Market Reaction: Broadcom's stock surged about 5% on Thursday, reflecting investor confidence in the company's strong AI chip demand and better-than-expected quarterly results, with analysts estimating revenue of $12 billion to $15 billion per gigawatt by 2027.
- Industry Impact: The upbeat results from Broadcom also benefited copper connectivity technology makers like Amphenol and Credo, whose shares rose 10% and 4% respectively, indicating a market preference for copper connectivity in AI server connections.
See More
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- Investment Agreement: Nvidia announced a $2 billion investment in both Lumentum and Coherent, aimed at accelerating innovation in advanced optics technologies, with this multi-year strategic agreement granting access to advanced laser components, thereby enhancing the energy efficiency and resilience of AI factories.
- Surge in Market Demand: According to TrendForce, global shipments of optical transceivers are expected to grow 2.6 times this year compared to last year, leading to a significant supply-demand imbalance for Lumentum and Coherent's laser systems, exacerbating upstream bottlenecks in laser light sources.
- Stock Performance: Despite a slight decline on Tuesday due to market impacts from the Middle East situation, Lumentum and Coherent's stock prices have surged 92% and 54% year-to-date, respectively, reflecting strong market performance and investor confidence.
- R&D Strategy: Nvidia's investment is primarily allocated for R&D in optics technologies, indicating its ongoing strategy to build an ecosystem supporting AI systems, which may further drive market demand and growth for both companies.
See More
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- Stock Transaction Overview: Senator Mullin resumed stock purchases on February 4, 2026, acquiring shares in companies like Adobe, Citigroup, and Carpenter Technology, indicating his ongoing market engagement and investment confidence.
- Defense Stock Investment: His purchase of Carpenter Technology ($CRS), which manufactures alloys for defense contractors, has already seen a 22% increase in value, suggesting that his strategy in the defense sector could yield significant returns.
- Increased Market Scrutiny: Given his position on the Senate Armed Services Committee, Mullin's investment portfolio is under heightened scrutiny, particularly regarding potential conflicts of interest in his investments in defense and oil sectors.
- Historical Trade Review: Mullin previously bought six out of the seven Magnificent Seven stocks on December 29, 2025, reflecting his interest in large-cap tech stocks, although his past violations of the STOCK Act regarding transaction disclosures have raised concerns about his trading transparency.
See More
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- Share Acquisition: According to a SEC filing dated February 17, 2026, Van Den Berg Management I, Inc acquired an additional 16,382 shares of MarketAxess during Q4 2025, bringing its total position to $5.51 million, a $3.07 million increase, indicating strong confidence in the company.
- Asset Allocation: MarketAxess represents 1.26% of Van Den Berg's 13F reportable AUM, highlighting its significant role in the fund's portfolio and reflecting its strategic importance in the fixed income market.
- Market Performance: As of February 13, 2026, MarketAxess shares were priced at $179.36, down 4.8% over the past year, underperforming the S&P 500 by 16.6 percentage points, suggesting market caution regarding its future growth prospects.
- Industry Competition: As electronic trading expands, MarketAxess has become a leading platform in the U.S. corporate credit market; however, its future growth will depend on maintaining market share against competitors like Tradeweb and Bloomberg in the electronic credit trading space.
See More
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- Acquisition Details: Semtech has acquired HieFo for $34 million in cash, aiming to enhance its data center portfolio and strengthen U.S. technology supply chains, particularly in the AI sector.
- Financial Impact: The acquisition of HieFo is expected to be accretive to adjusted diluted earnings per share within the first year, reflecting Semtech's confidence in its future profitability.
- Technology Integration: Semtech plans to combine HieFo's proven InP technology with its industry-leading TIAs and laser drivers to offer comprehensive solutions for next-generation optical platforms, thereby solidifying its leadership in high-bandwidth, low-power networking solutions.
- Market Sentiment: Despite Semtech's shares gaining over 153% in the past year, retail sentiment on Stocktwits remains neutral, indicating a cautious market reaction to the acquisition.
See More
