AXTI's AI Data Center Boom: Can Substrate Demand Sustain Growth?

Impact · against what's priced in

The news is a significant catalyst for AXTI due to massive revenue growth and a $500M backlog, but it is largely priced into COHR and LITE. For the larger optical players, the confirmation of strong AI data center demand and 1.6T transceiver transitions aligns with what the market already assumes for their current valuations.

LITE+0.20

Already priced in

The price assumes

The early-stage growth in 1.6T... proving to be a second major demand wave