@ProsperTradingAcademy's Mike Shorr touches on trading opportunities he sees powering the AI trade. He takes investors through his example options trades for Coherent (COHR), Bloom Energy (BE), and ServiceNow (NOW).

As AI infrastructure demand rises, McKinsey projects the semiconductor market could reach $2.3T by 2030, up 44% from last year's estimate. AI-driven earnings continue to surge, along with Wall Street's expectations, despite concerns over concentration risk. S&P 500 tech sector earnings are expected to grow by 64% YoY in Q3 2026, led by industries tied to the AI buildout.

Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Rank.

Coherent Corp. (NYSE:COHR | COHR Price Prediction) stock jumped 10% to $315.71 as traders focused on the company's PhotonLink platform and fresh Wall Street support for AI infrastructure suppliers. Lumentum Holdings (NASDAQ:LITE) stock rose 9% to $1,058.

Palantir's commercial AI momentum, scalable software model, strong profitability and cash generation give it an edge over Coherent despite its higher valuation.

Optics and photonics stocks are sliding together in afternoon trading, even as the freshest research on the group reads as a strong endorsement from Citi. Coherent (NYSE:COHR | COHR Price Prediction) stock is down 5% to $280.

Here is how Coherent (COHR) and Ingram Micro (INGM) have performed compared to their sector so far this year.

Goldman Sachs sees hyperscalers accelerating toward a spending level that dwarfs anything the tech industry has attempted before, and the companies positioned to profit most may have nothing to do with the chips getting all the attention.

Shares of Coherent Corp. (NYSE:COHR | COHR Price Prediction) are up 59% year to date (YTD) in 2026, a striking run for a stock leveraged to the shift from copper to optical connectivity inside AI data centers.

COHR and CBRS are riding AI demand, with strong growth outlooks, expanding infrastructure opportunities and improving earnings estimates.