$87M Deposit Secures Long-Term Indium Phosphide Supply Deal with Lumentum
AXTI has more than doubled off its 52-week low of $1.85.
Summary
AXT signed a definitive long-term supply agreement with Lumentum for indium phosphide wafer substrates, including capacity reservation through 2031. Lumentum will pay two $43.5M deposits—the first within 30 business days, the second in 2028—applied as shipment credits. This locks in a major customer for AXT's high-growth InP platform, providing revenue visibility and upfront cash. The deal follows a similar three-year agreement with Coherent announced earlier this month, reinforcing AXT's position in photonics supply chains. With a market cap near $2.4B, the $87M in deposits is material and signals strong demand for its substrates in data center and telecom applications.
At the time of this announcement, AXTI was trading at $37.46 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $1.85 to $143.16. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.