Coherent and Lumentum shares gained Thursday as Bank of America analysts lifted their price targets for the stocks.

Both stocks have rallied in recent weeks amid a flurry of positive news, including multibillion-dollar investments from Nvidia.

Two hot tech stocks backed by Nvidia just got a fresh vote of confidence on Wall Street.

Coherent (COHR) shares jumped 7% Thursday, while Lumentum (LITE) popped over 10%, as Bank of America analysts raised their price targets for the photonics and laser makers, citing rising expectations of growth after attending an industry event.

The analysts said they came away from meetings with management at the 2026 Optical Fiber Communications conference in Los Angeles this week even more convinced of "robust growth to come" for the companies, as the AI boom drives up demand for networking hardware.

Bank of America's higher targets could add to growing enthusiasm for shares Coherent and Lumentum, which have rallied this year after a series of positive developments.

Bank of America raised its price objective for Coherent to $290 from $250, and Lumentum's to $775 from $600, in a note to clients Thursday. Both are well above the Street's mean targets of $257 and $703, respectively, according to Visible Alpha.

With their recent gains, both stocks are approaching record highs set just earlier this month, after the companies announced multibillion-dollar investments from AI chip leader Nvidia (NVDA). The stocks also got a boost after S&P Dow Jones Indices said the stocks will join the S&P 500 later this month. The change is set to take place ahead of markets opening Monday.

With Thursday's gains, Coherent shares are up close to 50% since the start of the year. Lumentum shares have more than doubled in the same period.

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