AXTI leads gains after Q4 indium phosphide substrate prices jump 10%, the largest increase on record, driving supply shortages.
Optics stocks rallied Monday after a report revealed indium phosphide (InP) substrate prices surged over 10% in Q4, the steepest hike on record. AXTI climbed 13.71% intraday to $92.83, up 399% year-to-date, while COHR and LITE rose 8.12% and 6.79%, respectively.
Earlier expectations had forecast 3% to 5% increases, but prices have risen four times since Q4 2023. Epitaxial wafers also face supply constraints, with suppliers warning buyers may struggle to secure inventory despite higher offers.
NVIDIA holds a $3 billion stake in Coherent, while D.E. Shaw owns 2.25 million AXTI shares, adding to bullish sentiment in the sector.