Shares of optical communications and industrial laser stock (NYSE: COHR) rose 37.9% in June, according to data from S&P Global Market Intelligence.

There were two reasons behind Coherent's fantastic month. First, the company caught the AI wave, as Coherent has a leading position in optical transceivers for AI data center networking. Second, the company also introduced new industrial laser products that could greatly increase power and efficiency for industrial welding and cutting applications.

Like most semiconductor stocks, Coherent saw demand destruction last year coming off the pandemic digitization push and higher interest rates. So, Coherent was already trading significantly below its 2021 highs coming into June -- as in, nearly 70%.

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Source Fool.com