Clinton Township’s Coherent to join S&P 500
Clinton Township-based manufacturer Coherent is set to join one of the country’s premier stock market indexes.
Coherent will join the S&P 500 on March 23, according to a news release from the company. The index tracks prominent companies across every major sector of the American economy.
Founded in 1971 as II-VI, Coherent manufactures optical materials and semiconductors.
“Joining the S&P 500 is a testament to the strength of our team, the power of our technology portfolio and the trust our customers have placed in us,” Coherent CEO Jim Anderson said in the release. “As optical interconnects and photonic solutions become foundational to scaling next-generation AI data center infrastructure, Coherent is uniquely positioned to drive innovation and deliver enhanced value to our shareholders.”
Admission into the S&P 500 is based on criteria including market capitalization, financial strength and industry representation.
The news comes on the heels of a March 2 announcement of Coherent’s partnership with technology company Nvidia, which plans to invest $2 billion into the manufacturer to support research and development and capacity expansion of Coherent’s manufacturing facilities, with a focus on artificial intelligence technology.
Nvidia’s investment will boost the expansion of Coherent’s manufacturing and AI infrastructure at its various U.S.-based facilities.
The agreement also includes a multibillion-dollar purchasing agreement from Nvidia, along with future capacity and access rights for the company for advanced laser and optical networking products.
