Coherent Corp. just announced a big leap in short-reach optical interconnects with its next-gen 2D VCSEL and photodiode arrays. These operate at 850 nm in a 32x50G NRZ setup, and honestly, it looks like they’re set to edge out traditional copper links in today’s data centers.
That means more efficiency, higher parallelism, and lower latency. With AI and machine learning workloads exploding, hyperscale network traffic is growing faster than anyone expected.
Coherent’s roadmap stretches into 2026. They’re planning to roll out 1060 nm backside-emitting flip-chip VCSEL/PD variants, which should push data infrastructure performance even further.
Transforming Data Center Connectivity
Data is growing at a wild pace, especially with AI driving so much of it. The infrastructure behind these workloads can’t just stay the same.
Coherent’s 2D VCSEL (Vertical-Cavity Surface-Emitting Laser) and photodiode arrays mark a real jump from old copper-based interconnects. Copper’s been a bottleneck for efficiency for too long.
Operating at 850 nm with a 32x50G NRZ (Non-Return-to-Zero) configuration, these optical arrays push high-speed data links made for short-reach environments inside data centers. This setup lets data move in parallel, cutting power use and latency way down compared to older systems.
From Copper Links to Optical Precision
Swapping out copper for optical isn’t just about tech upgrades. It’s a smart move for the future of hyperscale computing.
Copper loses signals, slows things down, and eats up more energy. Optical systems just do better—faster, cleaner, more efficient.
- Lower Power Consumption — cuts costs and helps the environment.
- Reduced Latency — delivers data almost instantly when timing is everything.
- Cost Efficiency — makes it easier to scale up big deployments.
Meeting AI and Machine Learning Demands
AI and machine learning are putting huge pressure on networking. These models and datasets are massive, with training cycles that never seem to end.
They need high-bandwidth, low-latency connections. Coherent’s tech goes right at these needs, fitting with trends like Near-Packaged Optics (NPO) and Co-Packaged Optics (CPO) — both bring optical engines closer to processors, boosting performance and saving energy.
Roadmap to 1060 nm Flip-Chip Arrays
Coherent’s got plans for 2026. They’ll introduce 1060 nm backside-emitting flip-chip VCSEL and photodiode arrays that promise even better efficiency and bandwidth.
This opens up the door for bigger, faster data centers down the road.
Market Response and Investor Activity
The tech story is strong, but investors seem a bit split lately. Insider trading shows 21 sales and no purchases of Coherent stock by execs over the past six months, including notable sales by EVP Christopher Koeppen and EVP Julie Sheridan Eng.
Institutional moves have been all over the place:
- Dodge & Cox and BlackRock — cut their holdings a lot.
- Vaughan Nelson, Ameriprise, and Citadel Advisors — ramped up their positions sharply.
Analyst Sentiment Remains Positive
Wall Street analysts mostly like where Coherent’s heading. Ten firms have buy or overweight ratings, with a median price target of $115, ranging from $89 to $135.
They point to Coherent’s leadership in photonics and its big role in building the next wave of AI data infrastructure as reasons for long-term growth.
Showcasing at ECOC 2025
Coherent plans to show off its new interconnect tech at the ECOC 2025 conference in Copenhagen, September 29 to October 1.
This international event should give industry leaders a close look at the breakthroughs that could shape the future of network infrastructure.
Strengthening Leadership in Photonics
Coherent keeps pushing forward with compact, power-efficient interconnect solutions. This move really strengthens its role in the ever-evolving world of global data networks.
AI is shaking up just about every industry right now. Innovations like these optical arrays help keep data delivery fast and reliable, which is exactly what modern computing needs.
After decades working in photonics, Coherent now brings this breakthrough to the table. The company looks ready to drive the next wave of smart, scalable data infrastructure.
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Here is the source article for this story: Coherent Corp. Unveils Next-Generation 2D VCSEL and Photodiode Arrays for Enhanced Short-Reach Optical Interconnects in AI Networks