By Indrajit Bandyopadhyay
Publication Date: 2026-05-27 14:59:00
AXAXTI’s first quarter 2026 results suggest the company is quickly becoming a key supplier for expanding optical AI infrastructure, but the key debate now is whether implementation can keep up with demand. Indium phosphide sales increased to $13.6 million in the first quarter, representing more than half of the company’s total revenue and driven primarily by AI data center and optical transceiver applications. Management also announced that indium phosphide backlog exceeded $100 million, driven by significantly improved visibility among hyperscalers, optical module manufacturers and Tier 1 laser customers.
Short-term performance remains exceptionally strong. Management expects the second quarter to deliver the largest indium phosphide quarter in the company’s history, supported by accelerating AI infrastructure spending in both the United States and China. AXT said its materials are already being used in several hyperscaler ecosystems in the US, while the Chinese AI supply chain…
