In This Article:
Both Docusign DOCU and Coherent Corp. COHR are innovative technology companies reorienting their businesses strategically to seize emerging growth opportunities. DOCU is incorporating AI into its digital agreement platform, while COHR is focusing on next-gen photonics, semiconductors and AI-driven industries.
Growth-oriented investors may find the comparative analysis of these two disruptive tech stocks valuable for assessing their prospects.
The Case for Docusign
DOCU strategically integrated AI into its products and launched Intelligent Agreement Management (IAM) to help customers create, analyze, manage and automate agreements throughout the life cycle. This product reduces manual effort, propels execution and supports organizations in gaining visibility and control over their agreement data.
The product has clocked in a high adoption rate despite being in the early phase. In the fourth quarter of fiscal 2025, IAM contributed nearly 20% of direct sales. On the back of this technology, Docusign added 56 customers with annual contract value (ACV) outpacing the $300,000 threshold. This spurt of growth adds a shine in comparison with the lackluster nine customer additions in the preceding quarter. Such recovery is a testament to IAM’s efficacy and it is anticipated to bring about more deals with higher ACV.
The management stated that IAM is the fastest-growing new product in DOCU’s history. The body expects the product to generate a low-double-digit percentage proportion of the recurring subscription revenue base by the fourth quarter of fiscal 2026.
All in all, this technological advancement improves Docusign’s operations by minimizing friction for customers in their dealings, leading to higher efficiency, minimal errors and swifter turnaround times, improving customer satisfaction, acquisition and retention.
The Case for Coherent
With the growing demand for AI, traffic between data centers increases, calling the telecom industry to boost investments in higher-capacity interconnects, driving the need for optical transport networks. The surge in AI results in large data volume, making AI models demand faster and more effective data transmission. This has created a hospitable environment for Coherent’s products include 100G, 400G and 800G ZR/ZR+ transceivers, which significantly improve the efficiency of data transmission.
As the hyperscalers expanded AI training and inference workloads, the demand for 800G transceivers increased, providing a healthy contribution to the top line. Per management, 1.6T transceivers are expected to be the primary top-line contributor in 2025, suggesting a bandwidth for growth post the current 800G cycle. Customer evaluation has shown that the demand for 800G will not deteriorate despite the introduction of 1.5T.