We recently released a list 11 Hidden AI Stocks Buy Now. In this article, we will explore the position of Coherent Corp. (NYSE:COHR) with other hidden AI stocks.
David Grain, founder and CEO of Grain Management, joined CNBC on May 1 to discuss the need for data centers and tariff uncertainty. The main concerns of tariffs are the potential impact on costs, the resilience of the supply chain, and the overall impact on business operations and their expansion. He also shared his views on why investors remain confident about the broadband and digital infrastructure sectors. He believes broadband is generally important and stressed that demand for faster connectivity has not slowed down, which is why regulatory support for broadband expansion is stable around the world. Grain noted that the government has also met expectations of lighter regulation of the infrastructure sector, which makes it easier to promote projects and carefully trade. He describes the administrator's position as growth and supports secure and competitive networks. Cereals also observed that infrastructure, especially broadband, is in bipartisan supportive areas given its positive impact on economic growth at the state and local levels.
DeepSeek announcement also followed, with reports suggesting that some companies may return their data center spending. However, the latest earnings report appears to have at least addressed the debate and confirm that investment in the field is still underway. David Grain elaborated on the current trend in data center investment and also stated that the demand for data centers is increasing due to the increase in AI, as it requires a lot of computing power. He explained that while demand has not slowed down here, the feasibility of building a new data center is still affected by the availability of reliable and high-capacity power.
We screened financial media reports to compile a list of top hidden AI stocks with AI-related operations and opportunities. We then selected 11 of the most popular stocks among elite hedge funds, with analysts bullish. As of the 4th quarter, these stocks were ranked in order of rising numbers of shares.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (sEE is here for more details).
A row of precise industrial lasers is taking action to cut the most complex shapes.
Number of hedge fund holders: 71
Cooherent Corp. (NYSE:COHR) develops, manufacturers and markets to design materials, optoelectronic components and equipment as well as optical and laser systems and subsystems. These are used in the global industrial, communications, electronics and instrument markets. The company benefits from the need for AI-related components such as optical transceivers, which are required by data centers.
The company earned record Datacom revenue in FQ2 2025, especially due to the strong adoption of a coherent 800g transceiver. This revenue showed a year-on-year increase of 79%. To further support this growth, phosphide production tripled year-on-year. Phosphide phosphide is a binary semiconductor composed of binary semiconductors. It is used in lasers and other optoelectronic devices for high-speed data transmission in applications such as AI-driven data centers.
On March 24, Raymond James revised his data element optical model and predicted sales of AI backend closing members to be $22.2 billion by 2030, with an annual growth rate of about 30%. Its estimate of AI backend revenue increased from $7.1 billion to $7.5 billion in 2027. Raymond James analyst Simon Leopold also raised the stock from outperforming blocks to a strong buy, but lowered the target from $110 to $91.
Diamond Hill Select strategy points out the following about Coherent Companies (NYSE:COHR) in its Q4 2024 Investor's letter:
“Our other fourth-ranked Q4 contributors include Amazon, Wesco and Coherent company (NYSE:COHR). Coherent is a global leader in the industrial, communications, electronics and instrument markets in materials, networks and lasers. The demand for optical transceivers used in AI data center buildings is very powerful, benefiting coherence and generating higher revenues and new orders, which suggests that the momentum may continue. ”
Overall, cohr Ranked third On the list of hidden AI stocks we are going to buy now. While we acknowledge that COHR's growth potential is an investment, our belief is that AI stocks have huge returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than COHR but have less than 5 times its earnings, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.