AAOI, LITE, now Coherent. Same story - - AI is going optical, and those who aren't are going to be left behind.

This is for long term investors, not really for day traders. Overall I'm very excited about recent earnings in the space of optics, particularly as it relates to PEOT. The most recent from Coherent:

The copper-to-optical trade just got its third confirmation in eight days (AAOI, LITE, now COHR). The demand is real, it's contracted, and it's accelerating.

COHR Q4 FY26: Beat-and-raise, and the raise is the story

• Revenue $2.05B, +34% Y/Y (+42% pro forma) — came in at the very top of guidance and ~$55M above consensus
• Datacenter & Comms: $1.615B, +59% Y/Y, +19% Q/Q. Now ~79% of the company. This is acceleration, not just growth
• Non-GAAP EPS $1.74 vs $1.62 consensus — above the top of their own guide ($1.52–1.72)
• Non-GAAP gross margin 40.2%, +215 bps Y/Y, marching toward the 42% Investor Day target
• FY26 totals: revenue $7.12B (+22.5%), non-GAAP EPS $5.61 vs $3.53 (+59%) — EPS growing more than 2x revenue
• The guide: Q1 FY27 revenue $2.2–2.4B ($2.3B midpoint = +12.5% sequential, ~45% Y/Y) and EPS $1.85–2.05. They just printed $1.74 and are guiding the next quarter's floor above it
• Balance sheet reset: mezzanine equity gone (preferred converted, dividend drag eliminated), ~$2B cash + short-term investments, NVIDIA partnership intact
• CEO quote says it all: entering FY27 with "exceptional customer demand" as AI datacenters "transition from copper to optical connectivity"