AXT secures long-term supply contract with Lumentum through 2031

AXT has secured a long-term supply agreement with Lumentum Operations for indium phosphide wafer substrates, extending through 2031. The contract includes capacity reservations and is backed by total advance payments of $87.5 million, which will be applied as credits toward future deliveries.

This agreement follows a period of significant growth for AXT, driven by record demand for substrates used in AI infrastructure and optical connectivity. The company reported second-quarter revenue of $47.59 million, with the indium phosphide segment contributing $30.7 million. Following a rating upgrade from Zacks Research from ‘Hold’ to ‘Strong Buy’, AXT's stock has seen substantial gains, rising 451% since the beginning of the year.