Coherent Shares Climb on Silicon Carbide Breakthrough for AI Infrastructure

Shares of Coherent (COHR) surged approximately 7% on Friday after the company announced significant advancements in its silicon carbide (SiC) epitaxy capabilities. This technical breakthrough enables the production of power devices capable of handling up to 10 kilovolts, a critical threshold for high-voltage applications. The development is specifically aimed at next-generation AI data centers and industrial power applications. As AI workloads scale, the demand for more efficient and robust power management systems has intensified, making high-voltage SiC technology a key component in reducing energy loss and improving thermal management. Silicon carbide is increasingly preferred over traditional silicon for power electronics due to its superior ability to operate at higher voltages and temperatures. By pushing capabilities to the 10-kilovolt range, Coherent positions itself to capture a specialized segment of the power semiconductor market. Market participants reacted positively to the news, reflecting a broader trend of investors favoring companies that provide the essential hardware and materials required to sustain the AI infrastructure build-out. The immediate price action underscores the perceived strategic value of these epitaxy advancements in the current semiconductor cycle.