Tech Stocks Decline Following OpenAI Misses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 28 2026
0mins
Should l Buy COHR?
Source: CNBC
- Oracle Stock Drop: Oracle's shares fell over 3% after OpenAI missed its user and revenue targets, raising concerns about the sustainability of AI spending and impacting its $300 billion five-year partnership with OpenAI.
- Chip Stocks Decline: Following the OpenAI news, Nvidia and AMD saw declines of over 3% and 4%, respectively, while Arm Holdings plummeted more than 8%, indicating a waning market confidence in AI infrastructure.
- Centene Guidance Raise: Centene's shares surged 12% after it raised its full-year adjusted EPS guidance to over $3.40, surpassing the market consensus of $3.02, reflecting strong performance in the health insurance sector.
- Erasca Stock Plunge: Erasca's stock cratered nearly 50% after reporting a patient death in an early-stage trial, despite analysts viewing the incident as isolated, highlighting investor sensitivity to risks in the biotech sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy COHR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 335.730
Low
170.00
Averages
238.18
High
300.00
Current: 335.730
Low
170.00
Averages
238.18
High
300.00
About COHR
Coherent Corp. is a vertically integrated manufacturing company that develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in the communications, industrial, instrumentation and electronics markets. Its segments include datacenter & communications, and industrial. Its datacenter & communications segment offers optical transceivers, optical circuit switches, interconnect cables, optical instruments, optoelectronic devices, communication components, and wavelength management products. Its industrial segment offers lasers, machines & systems, components & accessories, optics, laser measurement instruments, ceramics & metal matrix, ion implantation, engineered materials, and wide-bandgap electronics. Its subsidiaries include Finisar Australia Pty Limited, Nufibre PTY LTD, Finisar Brasil Suporte De Vendas LTDA, Coherent Aerospace & Defense, Inc., and Coherent Asia, Inc.
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.
Corning Partners with Nvidia to Build Optical Manufacturing Plants
- New Plant Construction: Corning is partnering with Nvidia to establish three optical technology manufacturing plants in the U.S., expected to create at least 3,000 jobs and increase U.S. optical manufacturing capacity tenfold, significantly enhancing the company's competitive position in the rapidly growing AI infrastructure market.
- Stock Surge: Corning's shares have soared over 250% in the past year, bolstered by a deal with Meta worth up to $6 billion, reflecting the company's rapid pivot into the new economy and increased market recognition.
- Technological Innovation: The new plants will facilitate the application of optical fiber technology, likely replacing copper cables in Nvidia's AI systems, enhancing data transfer speeds and reducing energy consumption, thereby providing more efficient infrastructure support for AI workloads.
- Strategic Collaboration: This partnership represents a significant alliance between two infrastructure companies and marks a major opportunity in AI infrastructure development, with Corning and Nvidia committed to revitalizing American manufacturing and showcasing the importance of optical technology in the future of computing.
See More
Corning and Nvidia Partner to Expand Fiber Optic Production
- Job Creation: Corning and Nvidia are establishing three advanced manufacturing facilities in North Carolina and Texas, expected to create at least 3,000 new jobs, significantly boosting local economies and enhancing employment levels in the manufacturing sector.
- Capacity Expansion: This partnership will increase Corning's optical manufacturing capacity in the U.S. tenfold, addressing the growing demand for fiber optics and strengthening the company's competitive position in the optical communications market while supporting future technological innovations.
- Technology Integration: Nvidia plans to replace traditional copper cables in its AI systems with Corning's optical fibers, a technology known as co-packaged optics, which is expected to vastly improve data transfer speeds and reduce energy consumption, driving advancements in AI infrastructure.
- Positive Market Reaction: Corning's stock surged 14% following the announcement, while Nvidia's shares rose nearly 3%, reflecting market optimism about the potential of their collaboration and further solidifying their leadership positions in the AI sector.
See More
Stifel Raises Price Targets for Lumentum, Ciena, and Coherent Ahead of Earnings
- Price Target Increase: Stifel raised price targets for Lumentum, Ciena, and Coherent to $1,100, $585, and $412 respectively, indicating strong confidence in these companies and reflecting optimistic market expectations for the optical networking sector.
- Positive Industry Outlook: Analysts project that the Big Five tech companies' capital expenditures will reach approximately $70.52 billion in 2026, a 67.3% year-over-year increase, suggesting that the AI infrastructure cycle will continue to drive performance improvements for related companies.
- Enhanced Order Visibility: With order visibility extending to 12-18 months, the earnings outlook for Lumentum, Ciena, and Coherent has been further elevated, indicating increased market confidence in their future performance.
- Diverse Growth Drivers: Strategic initiatives such as CIEN's Hyper-Rail and DCOM expansion, LITE's OCS and CPO scaling, and COHR's three-vector expansion framework will provide long-term support for revenue and margin contributions, driving sustained growth for the companies.
See More
GameStop Proposes $55.5 Billion eBay Acquisition, Shares Surge
- Acquisition Proposal Surge: GameStop's unsolicited offer to acquire eBay for approximately $55.5 billion has led to a nearly 9% premarket surge in eBay's shares, indicating strong market enthusiasm for a potential merger that could create a formidable competitor to Amazon.
- Setbacks and Expectations Gap: Norwegian Cruise Line reported first-quarter earnings of 23 cents per share and $2.33 billion in revenue, both falling short of analyst expectations, resulting in a 5.5% drop in stock price, reflecting operational challenges amid rising fuel costs.
- Photonics Technology Outlook: Shares of Lumentum and Coherent rose by 3% after Rothschild & Co Redburn initiated buy ratings on both companies, with expectations that the demand for optical content in AI data center networking will drive their stock prices higher.
- Strong Food Sector Performance: Tyson Foods saw its shares rise over 2.5% after reporting better-than-expected fiscal second-quarter results, with adjusted earnings of 87 cents per share and revenue of $13.65 billion, demonstrating the company's resilience in a competitive market.
See More
Data Center Spending Bubble Talk Disproven This Quarter
- Capital Expenditure Overview: Alphabet, the parent company of Google, estimates its data center spending for 2023 to be between $180 billion and $190 billion, with its stock price rising from $349 to $385, reflecting a 12% weekly gain that indicates strong market confidence in its cloud business growth.
- Amazon Cloud Services Growth: Amazon anticipates $200 billion in spending, with its stock price increasing from $260 to $268, a weekly gain of 1.6%, as its AWS business achieves a quarterly revenue of $37.6 billion, growing at 28%, marking the fastest growth in 15 quarters.
- Apple's Low Spending Strategy: Apple has allocated only $13 billion for data centers, with its stock price rising from $271 to $280, a weekly gain of 3.4%, and despite relying on Google's Gemini service, it maintains high margins due to its global installed base of 2.5 billion devices.
- Challenges for Microsoft and Meta: Microsoft expects to spend $190 billion, with its stock price declining from $429 to $414, a weekly loss of 2.4%, as Azure grows at 40% but lacks market confidence; Meta plans to increase spending by $10 billion, with its stock price dropping from $670 to $605, a 9.8% weekly loss, facing significant uncertainty.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Corning Partners with Nvidia to Build Optical Manufacturing Plants
- New Plant Construction: Corning is partnering with Nvidia to establish three optical technology manufacturing plants in the U.S., expected to create at least 3,000 jobs and increase U.S. optical manufacturing capacity tenfold, significantly enhancing the company's competitive position in the rapidly growing AI infrastructure market.
- Stock Surge: Corning's shares have soared over 250% in the past year, bolstered by a deal with Meta worth up to $6 billion, reflecting the company's rapid pivot into the new economy and increased market recognition.
- Technological Innovation: The new plants will facilitate the application of optical fiber technology, likely replacing copper cables in Nvidia's AI systems, enhancing data transfer speeds and reducing energy consumption, thereby providing more efficient infrastructure support for AI workloads.
- Strategic Collaboration: This partnership represents a significant alliance between two infrastructure companies and marks a major opportunity in AI infrastructure development, with Corning and Nvidia committed to revitalizing American manufacturing and showcasing the importance of optical technology in the future of computing.
See More
Corning and Nvidia Partner to Expand Fiber Optic Production
- Job Creation: Corning and Nvidia are establishing three advanced manufacturing facilities in North Carolina and Texas, expected to create at least 3,000 new jobs, significantly boosting local economies and enhancing employment levels in the manufacturing sector.
- Capacity Expansion: This partnership will increase Corning's optical manufacturing capacity in the U.S. tenfold, addressing the growing demand for fiber optics and strengthening the company's competitive position in the optical communications market while supporting future technological innovations.
- Technology Integration: Nvidia plans to replace traditional copper cables in its AI systems with Corning's optical fibers, a technology known as co-packaged optics, which is expected to vastly improve data transfer speeds and reduce energy consumption, driving advancements in AI infrastructure.
- Positive Market Reaction: Corning's stock surged 14% following the announcement, while Nvidia's shares rose nearly 3%, reflecting market optimism about the potential of their collaboration and further solidifying their leadership positions in the AI sector.
See More
Stifel Raises Price Targets for Lumentum, Ciena, and Coherent Ahead of Earnings
- Price Target Increase: Stifel raised price targets for Lumentum, Ciena, and Coherent to $1,100, $585, and $412 respectively, indicating strong confidence in these companies and reflecting optimistic market expectations for the optical networking sector.
- Positive Industry Outlook: Analysts project that the Big Five tech companies' capital expenditures will reach approximately $70.52 billion in 2026, a 67.3% year-over-year increase, suggesting that the AI infrastructure cycle will continue to drive performance improvements for related companies.
- Enhanced Order Visibility: With order visibility extending to 12-18 months, the earnings outlook for Lumentum, Ciena, and Coherent has been further elevated, indicating increased market confidence in their future performance.
- Diverse Growth Drivers: Strategic initiatives such as CIEN's Hyper-Rail and DCOM expansion, LITE's OCS and CPO scaling, and COHR's three-vector expansion framework will provide long-term support for revenue and margin contributions, driving sustained growth for the companies.
See More
GameStop Proposes $55.5 Billion eBay Acquisition, Shares Surge
- Acquisition Proposal Surge: GameStop's unsolicited offer to acquire eBay for approximately $55.5 billion has led to a nearly 9% premarket surge in eBay's shares, indicating strong market enthusiasm for a potential merger that could create a formidable competitor to Amazon.
- Setbacks and Expectations Gap: Norwegian Cruise Line reported first-quarter earnings of 23 cents per share and $2.33 billion in revenue, both falling short of analyst expectations, resulting in a 5.5% drop in stock price, reflecting operational challenges amid rising fuel costs.
- Photonics Technology Outlook: Shares of Lumentum and Coherent rose by 3% after Rothschild & Co Redburn initiated buy ratings on both companies, with expectations that the demand for optical content in AI data center networking will drive their stock prices higher.
- Strong Food Sector Performance: Tyson Foods saw its shares rise over 2.5% after reporting better-than-expected fiscal second-quarter results, with adjusted earnings of 87 cents per share and revenue of $13.65 billion, demonstrating the company's resilience in a competitive market.
See More
Data Center Spending Bubble Talk Disproven This Quarter
- Capital Expenditure Overview: Alphabet, the parent company of Google, estimates its data center spending for 2023 to be between $180 billion and $190 billion, with its stock price rising from $349 to $385, reflecting a 12% weekly gain that indicates strong market confidence in its cloud business growth.
- Amazon Cloud Services Growth: Amazon anticipates $200 billion in spending, with its stock price increasing from $260 to $268, a weekly gain of 1.6%, as its AWS business achieves a quarterly revenue of $37.6 billion, growing at 28%, marking the fastest growth in 15 quarters.
- Apple's Low Spending Strategy: Apple has allocated only $13 billion for data centers, with its stock price rising from $271 to $280, a weekly gain of 3.4%, and despite relying on Google's Gemini service, it maintains high margins due to its global installed base of 2.5 billion devices.
- Challenges for Microsoft and Meta: Microsoft expects to spend $190 billion, with its stock price declining from $429 to $414, a weekly loss of 2.4%, as Azure grows at 40% but lacks market confidence; Meta plans to increase spending by $10 billion, with its stock price dropping from $670 to $605, a 9.8% weekly loss, facing significant uncertainty.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
