Taiwanese optical communications maker LandMark Optoelectronics has secured a four-year contract with a major US customer and is investing heavily in expanding capacity, sending its share price to an all-time high — good news for shareholders.

• LandMark's board approved an investment of up to NT$2.27 billion to purchase additional production equipment, and the company signed a long-term agreement to supply CW lasers to a US customer from 2027 to 2030.
• The news drove the stock sharply higher from the open, with gains of more than 7% during the session and a new record price.
• Demand is coming from AI, high-performance computing and data centres. LandMark expects next year's capacity to be 2.5 times this year's.
• Indium phosphide substrate prices have been rising since the fourth quarter of last year, and epitaxial wafer quotes have already been adjusted twice, with a further increase possible in the fourth quarter. With supply falling short of demand, module makers and data centre operators are competing to pay more to secure supply.
• The Taiwan stock market surged 663 points the same day to close at 45,832, with foreign investors net buyers of more than NT$36.5 billion, and overall sentiment leaning bullish.

Outlook: The key factors ahead are whether quotes can be raised further and how quickly new capacity comes online, but after such a rapid run-up investors should also watch for loosening shareholding structure and the risk of a sharp pullback.