【US Stocks Move】AXT surged on September 24: InP demand + Lumentum secured orders

AXT September 24 Surge Interpretation

Keywords: InP demand, Lumentum order lock-in

1. On September 24, Morgan Stanley released an ECOC brief, stating that the NPO consensus has shifted towards implementation in 2028, that optical devices have been sold out for 12–18 months, and listing InP substrates as the biggest bottleneck; AXT mainly produces high-performance compound and single-element semiconductor substrates, including InP substrates.

2. On September 24, Nomura meeting minutes indicated that the gap for 1.6T optical module DSPs in 2026 will be about 3 to 4 million units, and will exceed 20 million units in 2027. Substantial relief is expected only in the second half of 2027, so the supply shortage in the optical communications industry chain continues.

3. On July 26, AXT and Lumentum signed a six-year agreement for InP wafer supply and reserved capacity. Lumentum is required to pay a $43.5 million initial deposit and commit to a minimum annual purchase volume, providing AXT’s InP business with orders and capacity arrangements.

4. On July 30, AXT announced quarterly results for the period ending June 30, with revenue of $47.59 million, an increase of about 165% year-on-year, and net profit of $13.03 million compared to a net loss of $7.67 million in the same period last year. Gross margin expanded to nearly 45%. InP revenue set a new quarterly high, with data center optical connectivity demand driving business growth.

(Disclaimer: This content is summarized through AI technology by gathering public information and is for reference only. It does not constitute investment advice.)