Quick Read – Hurlston called InP shortages worse than memory, yet LITE and COHR have each sold off over 20% despite components being sold out. – NVDA invested in both Lumentum and Coherent, the two dominant InP producers, as Lumentum’s supply-demand imbalance now exceeds 30%. -…
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With AI capex dominating market sentiment, tech leaders are tempting the bulls. Speaking at the RAISE Summit, Lumentum CEO Michael Hurlston warned that the next AI infrastructure bottleneck is indium phosphide (InP), a niche semiconductor material. The shortage, he said, will be worse than what the memory industry faces. “Between the two of us, I don’t think we can service the demand that NVIDIA and others are now putting on us to solve this resistance problem in the data center.
And so, the shortage of indium phosphide, I think, will become even more acute than what we see from the memory guys,” Hurlston said. Why InP, and Why Now While chip stocks dominate the headlines, the lesser-known story is what keeps data moving between them. InP is a compound semiconductor that emits light. “it’s basically something that can emit light.