Coherent shares surge 10.16% intraday after securing $154M Texas grant for 6-inch InP wafer production.

Coherent surged 10.16% intraday after securing a $14.08 million Texas Semiconductor Innovation Fund grant to build a 6-inch Indium Phosphide wafer fabrication plant in Sherman, marking the world’s first such facility. The grant, part of Texas’s $154 million capital investment initiative, underscores the company’s strategic expansion in photonics and AI infrastructure, aligning with growing demand for high-speed connectivity solutions. Concurrently, JPMorgan raised its price target to $245 from $215, citing Coherent’s 108% annual stock return, robust 18.6% revenue growth, and strong earnings visibility, including a recent $1.69 billion quarterly revenue beat. The stock’s sharp intraday rise reflects investor optimism over the Texas grant’s supply-chain strengthening potential and analyst upgrades, which collectively signal confidence in Coherent’s leadership in next-generation semiconductor and optical technologies.