Coherent’s 3.84% Surge on $260M Volume Hides 27% Drop, Ranks 430th as Cloud Tech Growth Fuels Investor Hope

Coherent (COHR) surged 3.84% on August 4, 2025, with a trading volume of $260 million, marking a 27.11% decline from the previous day’s volume. The stock ranked 430th in trading activity, reflecting mixed investor sentiment amid sector-specific developments.

Recent analyst commentary highlighted Coherent’s exposure to cloud infrastructure growth. Morgan Stanley noted that rising cloud capital expenditures are boosting demand for laser and photonics technologies, positioning Coherent and peers like Lumentum to benefit from heightened industry investment. This aligns with broader trends in data center expansion and AI-driven infrastructure needs, which are expected to drive long-term demand for Coherent’s products.

Despite the rally, Coherent’s trading volume remains subdued compared to its historical averages. The drop in liquidity could signal short-term caution among traders, though the stock’s performance suggests underlying confidence in its strategic positioning within the optical technology sector. Earnings momentum from prior quarters, including a recent Zacks report citing surging earnings estimates, further supports a positive near-term outlook.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% gain. This underscores the role of liquidity concentration in short-term performance, particularly in volatile markets where high-volume stocks often exhibit amplified price movements.