As the most fundamental and irreplaceable semiconductor material in the realm of AI computing power optical interconnectivity, the indium phosphide (InP) sector has exhibited sustained growth since the second quarter. It has emerged as a focal point for both institutional and individual investors, marked by a trend of increasing trading volumes and prices. On June 22, Xingye Technology announced its acquisition of InP-related business assets for 55 million yuan, which was followed by five consecutive trading days of the stock price hitting the upper limit. Early in June, Suqian Liansheng revealed the establishment of a joint venture dedicated to the research and development, production, and sales of InP substrates, with its stock price subsequently experiencing a 17-day consecutive rise. The overall enthusiasm in the secondary market has also risen accordingly. The Wind Indium Phosphide Index has climbed by 25.31% since June, reaching 4,211.71 points on June 25 and setting a new stage high. Trading activity within the sector has surged, with the average daily trading volume surpassing 32 billion yuan over the past month. Several public fund managers, in interviews with Securities Times reporters, stated that this round of market activity is not a short-lived speculative trend but rather a manifestation of the industrial logic underlying the global AI computing power construction wave extending upstream. The InP industry chain boasts extremely high barriers to entry and is confronted with severe supply-demand imbalances. Coupled with factors such as accelerated import substitution, the industry possesses a solid foundation for sustained performance over multiple years, underscoring its exceptional medium- to long-term allocation value.