A Yahoo Finance analysis highlights that photonics manufacturer Coherent's (NYSE:COHR) data center segment sales grew 59% year-over-year, accounting for 79% of total sales. Company management aims to achieve a quarterly revenue run rate exceeding $3 billion by the end of fiscal year 2027. Despite Coherent's stock price falling 8.74% over the past week to $268.64, 21 analysts maintain a "Buy" consensus rating with an average price target of $397, implying approximately 48% upside potential. Furthermore, Coherent's indium phosphide production capacity is expected to double this quarter and double again by the end of 2027 to meet demand for 800G and 1.6T transceivers in supply-constrained markets.