Veeco Instruments' stock surged 11.02% in after-hours trading on Tuesday, following the announcement of significant new equipment orders.

The company revealed it received orders totaling more than $250 million from multiple customers for its Spector Ion Beam Deposition, Lumina Metal Organic Chemical Vapor Deposition and WaferEtch Wet Processing systems. These orders support the manufacturing of indium phosphide lasers used in silicon photonics, with deliveries beginning in 2026 and significantly accelerating in 2027.

A substantial portion of the demand is tied to Spector systems used for laser facet coatings for 800G and 1.6T optical transceivers for hyperscale data centers, driven by the growth of AI infrastructure and the shift from copper to optical interconnects. The orders underscore Veeco's expanding role in this rapidly growing market and its ability to support customers scaling high-volume manufacturing of advanced components.