Coherent Corp. (COHR)'s Guidance Miss Was "Beyond Me," Says Jim Cramer

We recently published 11 Latest AI & Other Stocks On Jim Cramer’s Radar. Coherent Corp. (NYSE:COHR) is one of the stocks Jim Cramer recently discussed.

Coherent Corp. (NYSE:COHR) is an industrial technology company that makes and sells products such as lasers and transceivers. Its products provide it with exposure to the AI data center industry. The shares have lost 10% year-to-date, primarily on the back of a stunning 19.6% drop in August. Coherent Corp. (NYSE:COHR)’s shares dropped after its fourth quarter earnings report raised concerns about the firm’s future growth prospects. Ahead of the earnings, the firm had announced that it would sell its laser business; a decision which made it guide fiscal first quarter revenue at a midpoint of $1.53 billion, which was below the analyst estimates of $1.55 billion. Cramer failed to understand why Coherent Corp. (NYSE:COHR)’s guidance missed the mark:

“[On revenue guidance] That was, beyond me. Because it was not your typical business that blew up.”

Fidelity Investments mentioned Coherent Corp. (NYSE:COHR) in its Q1 2025 investor letter. Here is what the fund said:

“The fund’s underperformance of the Russell benchmark came from both stock picking and industry selection, with our choices in industrials hurting most. Among individual stocks, a non-benchmark holding in Coherent Corp. (NYSE:COHR) (-33%) was the biggest detractor. The company manufactures networking and laser equipment for the industrial and electronics markets. In early February, Coherent reported Q4 2024 financial results that exceeded expectations, but its forward guidance came in substantially weaker than anticipated. This caused the shares to fall in February and March. We reduced the stake, but the stock remained a top 10 overweight as of March 31.”

While we acknowledge the potential of COHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.