COHR
NVDA
Texas gets a bigger slice of the AI pie
Coherent announced an expansion of its Sherman, Texas manufacturing facility, and this one isn’t just about adding a few extra machines in the back room. The company is scaling production of lasers, optical transceivers and semiconductor tech that help AI systems move data fast enough to keep up with all that expensive compute.
Nvidia’s supply chain gets a little less fragile
This matters because AI isn’t only about who has the biggest GPUs. It’s also about the plumbing — the connectivity layer that keeps the whole thing from choking. Nvidia CEO Jensen Huang even showed up in Sherman with Coherent CEO Jim Anderson, which is a pretty loud hint that this is strategically important to the broader AI stack.
Uncle Sam is helping pay the tab
Coherent said the project has a $50 million CHIPS Act grant, on top of about $17 million previously awarded. The new setup includes what the company calls the world’s first high-volume 6-inch indium phosphide manufacturing line, which should improve efficiency and output as demand for optical tech keeps climbing.
Why investors are paying attention
This is the kind of news that can quietly matter a lot over time. More U.S.-based production, more AI networking capacity, and a tighter link to Nvidia’s ecosystem all sound great on paper. But the market’s first reaction was a shrug mixed with a flinch: COHR dropped 7.5% during the session and fell further after hours.
Big picture: AI still needs the sexy chips, sure. But it also needs the nerdy stuff that moves data around, and Coherent is trying to own more of that unglamorous gold rush.