On August 18, Coherent declined 3.48% in pre-market trading, trading at approximately $339.19 per share, with turnover of $3.46 million. The stock had surged over 7% in the prior regular session and gained nearly 5% intraday the session before that, accumulating significant short-term gains that triggered profit-taking.

The broader optical communications sector faced collective selling pressure, with Fabrinet falling over 8%, Corning and Applied Optoelectronics each declining over 3%. The sector-wide retreat intensified downward momentum on Coherent despite its strong fundamental backdrop. The company announced on the same day that it has begun customer sampling of 300mm high thermal conductivity silicon carbide substrates designed for AI chip thermal management, offering up to 25% cooling improvement over existing materials.

Coherent recently reported Q4 fiscal revenue of $2.05 billion, up 34% year-over-year, with adjusted EPS of $1.74, up 74%, both exceeding estimates. Multiple Wall Street firms raised price targets, with JPMorgan setting $435, Needham and Jefferies at $420, and Morgan Stanley at $375. However, the outsized prior rally left the stock vulnerable to near-term selling pressure amid sector rotation.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)