# AXT indium phosphide supply and market growth > Live situation record from CLSTR: https://clstr.news/situations/axt-indium-phosphide-supply-and-market-growth > Updated: 2026-08-23T19:55:01.000Z. Sources: 5. Developments: 2. 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 supported by $87.5 million in advance payments to be applied as credits toward future deliveries. This agreement follows a period of growth for AXT, driven by 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 risen 451% since the beginning of the year. More recently, AXTI, Inc. has experienced a significant breakout following a period of heavy institutional volume. After reaching a resistance level of $98.00, the stock has been testing support in the $70-$71 range. This surge is attributed to increased demand for Indium Phosphide in AI data centers. ## Timeline ### 2026-08-23: Axsome Therapeutics, CVD Equipment, and AXTI show market activity Axsome Therapeutics, CVD Equipment, and AXTI, Inc. report varying stock performance, driven by pharmaceutical growth, technical breakouts, and AI-related demand. 3 sources. https://clstr.news/cluster/axsome-therapeutics-and-axt-inc-see-significant-market-activity ### 2026-08-17: AXT secures long-term supply contract with Lumentum through 2031 AXT has signed a long-term supply deal with Lumentum Operations through 2031, backed by $87.5 million in advance payments to support growing demand for AI-related optical connectivity substrates. 2 sources. https://clstr.news/cluster/axt-secures-long-term-supply-contract-with-lumentum-through-2031 --- Cite as: AXT indium phosphide supply and market growth. CLSTR, https://clstr.news/situations/axt-indium-phosphide-supply-and-market-growth