Rosenblatt Securities reported on May 28, 2026, that Nvidia requested suppliers increase indium phosphide (InP) laser capacity 20-fold by 2030. This initiative aims to eliminate networking bottlenecks in expanding AI data centers.
Coherent (COHR) is positioned as a primary supplier to fulfill this requirement. Rosenblatt projects the company could achieve a $4.3 billion production capacity by 2030.
The demand for advanced optical components stems from the need for faster data transmission between GPUs in massive AI clusters. This development follows Coherent’s fiscal third-quarter results, which showed accelerating growth in its Datacenter & Communications division.