{"podcast":{"title":"Chip Stock Investor Podcast","slug":"chip-stock-investor-podcast-6441813","podcast_index_feed_id":6441813,"rss_url":"https://anchor.fm/s/e2cacf78/podcast/rss","website_url":"https://chipstockinvestor.com/","image_url":"https://d3t3ozftmdmh3i.cloudfront.net/staging/podcast_uploaded_nologo/37949422/37949422-1745251328337-b57bc485b0f23.jpg","author":"Nicholas Rossolillo; Kasey Rossolillo","episode_count":455,"summary":"Semiconductors are the heart of the modern economy. These small devices that manipulate the flow of electricity run everything from our PCs and smartphones to our cars to manufacturing. The semiconductor industry is at an inflection point of renewed growth, powering new movements like generative AI and electric vehicles. The Chip Stock Investor Podcast explores how semiconductors work, and especially the business of chips. Follow Nicholas and Kasey to learn how chip technology has become the engine of the world, and how to invest in its growth.","last_synced_at":"2026-07-01T06:19:34.009916+00:00","page_url":"https://stenobird.com/podcast/chip-stock-investor-podcast-6441813"},"episode":{"title":"Coherent (COHR): NVIDIA's $2B Bet on Optical Networking's Moment","slug":"coherent-cohr-nvidia-s-2b-bet-on-optical-networking-s-moment","published_at":"2026-06-09T14:00:01+00:00","page_url":"https://stenobird.com/podcast/chip-stock-investor-podcast-6441813/coherent-cohr-nvidia-s-2b-bet-on-optical-networking-s-moment","show_page_url":"https://stenobird.com/podcast/chip-stock-investor-podcast-6441813","url":"https://podcasters.spotify.com/pod/show/chipstockinvestor/episodes/Coherent-COHR-NVIDIAs-2B-Bet-on-Optical-Networkings-Moment-e3khmei","audio_url":"https://anchor.fm/s/e2cacf78/podcast/play/121214866/https%3A%2F%2Fd3ctxlq1ktw2nl.cloudfront.net%2Fstaging%2F2026-5-9%2F425788929-44100-2-0fa97101f426c.mp3","summary":"Optical networking has spent years as a niche corner of the semiconductor industry. CSI makes the case that the moment for companies like Coherent may have finally arrived — and NVIDIA's two-billion-dollar equity investment in the company suggests the largest chipmaker in the world agrees. Coherent (COHR), is an integrated device manufacturer and base materials supplier specializing in indium phosphide and silicon carbide wafers. Under CEO Jim Anderson, who pulled off a similar business transformation at Lattice Semiconductor, Coherent has been shedding non-core assets and sharpening its focus on data center and communications, which now represents seventy-five percent of revenue and posted forty-one percent year-over-year growth in the most recent quarter. Pro forma revenue growth came in at twenty-seven percent, with gross margins approaching the forty percent threshold that marks a key milestone for IDM-class businesses. The divestitures tell the story of the transformation: a four-hundred-million-dollar sale of the aerospace and defense laser business to private equity, and a fifty-one-million-dollar exit from a materials processing tools segment that was diluting margins. What remains is a tighter, faster-growing business positioned at the intersection of AI data center infrastructure, optical connectivity, and advanced materials. The NVIDIA investment is the centerpiece of this episode. With free cash flow running deeply negative as Coherent scales manufacturing capacity for co-packaged optics and near-package optics expected in the second half of 2026, the company needed capital. NVIDIA needed the optical components. The result was a cash-for-equity arrangement that Nick describes as a more direct version of the warrant-based incentive deals seen at companies li…","meta_description":"Optical networking has spent years as a niche corner of the semiconductor industry. CSI makes the case that the moment for companies like Coherent may hav…","key_points":[],"chapters":[],"topics":[],"duration_seconds":686,"processing_state":"not_requested","actions":[{"name":"request_transcript","method":"POST","url":"https://stenobird.com/v1/public/podcasts/chip-stock-investor-podcast-6441813/episodes/coherent-cohr-nvidia-s-2b-bet-on-optical-networking-s-moment/transcription-requests","description":"Idempotently request low-priority transcript generation for this episode."},{"name":"read_markdown","method":"GET","url":"https://stenobird.com/podcast/chip-stock-investor-podcast-6441813/coherent-cohr-nvidia-s-2b-bet-on-optical-networking-s-moment.md","description":"Read the agent-friendly Markdown representation of this episode resource."}]}}