---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000827086.md"
description: "Few earnings TLDRs with my favorite $AXT(AXTI.US) and $Amazon(AMZN.US):Amazon:- Raised 2026 capex to $220B vs. prior $200B (partly due to higher memory costs, which is bullish on $Micron Tech(MU.US) to Samsung) - Even at $220B, Amazon will not have enough capacity to meet all 2026 demand; Jassy expects the same in 2027.- Most incoming 2027 capacity is already reserved, with substantial 2028 capacity also reserved.Mostly read through on upstream semis. $Alphabet(GOOGL.US), $Meta Platforms(META.US), $Amazon(AMZN.US), and $Microsoft(MSFT.US) all identified compute shortage. All the narratives a few weeks earlier was "excess compute" from Meta and others + hyperscalers cutting back on spend... All BS. Amazon earnings was very bullish on AI semi trade. AXTI:- AXT to double InP capacity during 2026. Then double again in 2027. This is expected to make AXT "by far the largest indium phosphide producer in the world." - LFG- Q2 rev was $47.6M, the highest quarterly revenue in AXT history (InP revenue reached a record $30.7M, from DC applications.)- Revenue increased 77% sequentially and 164% year over year.- InP revenue-capacity targets: $60M per quarter exiting 2026.- $130M per quarter exiting 2027 That $130m target could be hiked too since management stated they find "whatever ways to increase that capacity expansion"- Management said the reported backlog remains well above $100M, but that number no longer reflects all available demand."Customer demand continues to outpace supply, no matter how fast we add capacity." 800G/1.6T is driving the current cycle, while NPO/CPO extends it beyond 2027. Also they're targeting 50%-plus gross margin: "We should definitely be targeting a number that begins with a five."China demand more than doubled, and their agreements with Casela, $Coherent Corp.(COHR.US) and $Lumentum(LITE.US) did not materially drive Q2. This is not even considering my projected massive ASP hikes yet as InP substrates get more bottlenecked. TLDR:- Amazon too much compute demands, needs capex to fufill it, so upstream semis go brrr. - AXT world largest InP substrate supplier, high gross margins, expansion, and supply can't keep up with demand.  Bullish on demand side from Amazon + capex. Bullish on upstream optical supply chains from too much demand."
datetime: "2026-07-31T07:16:43.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000827086.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000827086.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000827086.md)
author: "[Serenity](https://longbridge.com/en/profiles/26792196.md)"
generator: "portal-rs"
---

# Few earnings TLDRs with my favorite $AXT(AXTI.US) …


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**