Oh look… a new report by Reuters shows China’s control over InP threatens the AI DC buildout.
Who could have guessed $AXTI would have been a major point of failure?
Serenity: Warning: The entire AI industry will likely be bottlenecked by two companies:
1. $AXTI ($700M)
2. $SMTOY ($31.7B)
Which both control 60–70%+ of the world's InP substrates.
Future $NVDA, $GOOGL TPU v7 pods, $META, $MSFT, $AMZN hyperscaler clusters require InP-based lasers and
The author highlights that the AI data center buildout is heavily dependent on InP substrates, a market where AXTI and SMTOY control 60-70% of the global supply, making them critical bottlenecks for major hyperscalers.
Highlighted as a critical bottleneck controlling a massive share of the global InP substrate market essential for AI data centers. The author specifically points out its small market cap ($700M) relative to its industry importance. This bullish scarcity thesis aligns with the recent 8.8% price surge and news attributing the jump to AI optimism, despite the mentioned geopolitical risks.
Identified alongside AXTI as controlling 60-70%+ of the world's InP substrates, making it a key player in the AI supply chain. However, the author's thesis on its critical positioning diverges from its current market performance, as the stock is down 7.4%.
关键要点
A Reuters report indicates China's control over InP poses a threat to AI data center expansion.
AXTI and SMTOY are identified as critical bottlenecks, controlling over 60-70% of the global InP substrate market.
Future AI infrastructure for major tech companies relies heavily on InP-based lasers.
