The Indium Phosphide (InP) Optical Networking Stock No One Is Talking About Yet

Oxford Instruments is a tiny UK small cap quietly embedded in NVIDIA's AI networking supply chain — and almost no one in the semiconductor investing community is talking about it yet. CSI breaks down the indium phosphide bottleneck, Coherent's 6-inch wafer breakthrough, and why this overlooked compound semiconductor equipment maker is worth watching closely in 2026. Oxford Instruments (LON: OXIG) has spent decades as a research-focused equipment supplier — but something is shifting. As AI data center networking demand accelerates, Coherent's breakthrough in 6-inch indium phosphide (InP) wafer production is moving from R&D into early commercial scale. Oxford Instruments' plasma deposition and plasma etch systems are a key part of that transition, placing this £1B market cap business directly in the supply chain serving NVIDIA's optical interconnect buildout. In this video, CSI maps the full InP supply chain — from substrate suppliers like Sumitomo Electric, AXT, and IQE, through wafer inspection (KLA Corp, Onto Innovation), to deposition and etch (Applied Materials, Oxford Instruments) — and explains why compound semiconductor manufacturing equipment is the bottleneck that must be unlocked for AI infrastructure to scale. We also look at Oxford Instruments' latest fiscal year financials, their new facility investment, the divestiture of their quantum computing segment, and whether the current mid-35x trailing / mid-20x forward P/E represents relative value compared to the richly valued Fab Five. This is a vintage Chip Stock Investor supply chain breakdown — data-driven, honest about the risks, and focused on what matters for long-term fundamental investors. Semi Insider members get access to CSI's research platform and tools plus deeper research as it happens. Join at https://chipstockinvestor.com/ 📺 Watch our related video — we called this back in May:    • Advantest Is Up 450% — Here's What the Val...   🔗 Full research + stock tools: https://chipstockinvestor.com Get 15% of your membership with our special link here: https://fiscal.ai/csi 🎧: https://creators.spotify.com/pod/prof... 📰Free newsletter: https://mailchi.mp/chipstockinvestor/... If you found this video useful, please make sure to like and subscribe! 0:00 - Why the InP Bottleneck Matters Now 1:45 - Coherent's 6-Inch Wafer Breakthrough Explained 3:15 - Full InP Supply Chain Map (Sumitomo, AXT, IQE, KLA, AMAT) 5:30 - Oxford Instruments: From R&D Supplier to Commercial Partner 7:45 - Financials: Revenue Trends, Margins & Balance Sheet 10:30 - Quantum Computing Divestiture & Strategic Focus 12:00 - Valuation: Relative Value vs. the Fab Five? 13:30 - Thesis Summary & What We're Watching ******************************************************* Affiliate links that are sprinkled in throughout this video. If something catches your eye and you decide to buy it, we might earn a little coffee money. Thanks for helping us (Kasey) fuel our caffeine addiction! Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal. CSI doesn't own shares of Oxford Instruments. #StockMarket2026 #SmallCapStocks #SemiconductorStocks #OxfordInstruments #COHR