Coherent, Lumentum Stocks Gain On Silicon Photonics Partnership With Nvidia: Retail Sentiment Edges Up

Nvidia’s Spectrum-X Photonics and Quantum-X Photonics networking switches use high-power, high-efficiency lasers to reduce power consumption and make the system more resilient.

Shares of Coherent Corp. (COHR) and Lumentum Holdings Inc. (LITE) gained during Tuesday’s after-hours trading session after the two companies announced a partnership with Nvidia on silicon photonics at the ongoing GTC 2025 event.

Shares of Coherent gained nearly 0.5% in the after-hours trading session, while Lumentum gained more than 3%.

Nvidia was expected to announce its spectrum co-packed optics (CPO) technology at GTC 2025, its bi-annual developer conference.

Baird said in a recent research note to clients that the AI bellwether could unveil Spectrum CPO's technology roadmap as it seeks to enhance the power efficiency of its Blackwell platform.

Coherent and Lumentum are among the two partners in Nvidia’s silicon photonics ecosystem.

Analysts at Wedbush underscored an explosion in computing and power requirements of data centers – the brokerage estimates that the demand for Nvidia’s Blackwell chips is currently outstripping supply by 15:1.

This is also expected to increase power consumption, and that’s where the silicon photonics technology will help.

Nvidia’s Spectrum-X Photonics and Quantum-X Photonics networking switches use high-power, high-efficiency lasers to reduce power consumption and make the system more resilient.

“Photonics switch technology will revolutionize data centers and advance a new wave of AI factories,” said Gilad Shainer, Senior Vice President of Networking at Nvidia.

Retail sentiment on Stocktwits for Coherent saw an uptick at the time of writing, although it continued to hover in the ‘extremely bearish’ (22/100) territory.

On the other hand, investors were optimistic about Lumentum, with retail sentiment surging to ‘bullish’ (72/100) from ‘bearish’ (41/100) a day ago.

One user hopes that the stock has a “good run” on Wednesday following the Nvidia partnership announcement.

Coherent’s stock has fallen almost 31% year-to-date, while Lumentum’s stock has witnessed a decline of nearly 22%.

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