Coherent Corp. (NYSE:COHR) stock surged Thursday after NVIDIA Corp. (NASDAQ:NVDA) reported better-than-expected second-quarter results and issued an upbeat outlook. The results renewed investor enthusiasm for artificial intelligence infrastructure stocks.
Nasdaq futures rose 0.9%, while S&P 500 futures gained 0.28%.
Coherent often trades like a momentum stock because of its exposure to artificial intelligence and data center spending. Therefore, broader technology-sector moves can amplify the stock’s premarket swings.
Technical Analysis
Coherent remains in a longer-term uptrend despite its recent pullback. The stock traded 11.2% above its 200-day simple moving average of $272.01.
However, it remained 2.6% below its 20-day SMA of $310.52. It also traded 6.5% below its 50-day SMA of $323.49.
That setup suggests the longer-term trend remains bullish, but the short-term recovery is incomplete. The stock must reclaim its 20-day and 50-day averages to strengthen the rebound.
Meanwhile, the relative strength index stood at 46.34. That indicates neutral momentum rather than overbought or oversold conditions.
The 20-day SMA also remained below the 50-day SMA, which is a bearish short-term signal. However, the 50-day SMA stayed above the 200-day SMA. That supports the longer-term bullish trend.
Resistance stands near $328, close to the 50-day average. Support sits near $255, below the 200-day average. A break below that level could raise the risk of another test of the July low.
Analyst Outlook
Coherent stock trades at a price-to-earnings ratio of 71.4. That reflects a premium valuation. It carries a Buy consensus rating. Analysts have an average price forecast of $402.25.
Jefferies maintained a Buy rating and raised its price forecast to $420 on Aug. 13. Morgan Stanley maintained an Equal-Weight rating and raised its forecast to $375. B. Riley Securities maintained a Neutral rating and increased its forecast to $345.
Top ETF Exposure
The Corgi Lithography & Semiconductor Photonics ETF (NASDAQ:EUV) has a 3.76% weighting in Coherent. The Spear Alpha ETF (NASDAQ:SPRX) has a 7.86% weighting, while the NestYield Dynamic Income ETF (NYSE:EGGY) has a 4.92% weighting.
Significant inflows or outflows from these funds could create additional buying or selling pressure on Coherent shares.
Price Action
Coherent shares rose 2.84% to $302.73 in Thursday’s premarket trading, according to Benzinga Pro.
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