AXT (NASDAQ:AXTI) Shares Gap Up After Strong Earnings

AXT Inc (NASDAQ:AXTI)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $36.97, but opened at $41.24. AXT shares last traded at $43.1220, with a volume of 2,612,565 shares traded.

The semiconductor company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.12. The firm had revenue of $47.59 million during the quarter, compared to the consensus estimate of $34.08 million. AXT had a return on equity of 1.55% and a net margin of 3.23%.AXT has set its Q3 2026 guidance at 0.300-0.320 EPS.

AXT News Summary

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Q2 results substantially exceeded expectations: AXT reported $0.19 in earnings per share versus the $0.07 consensus estimate, while revenue reached approximately $47.6 million, well above estimates near $34 million and up sharply from the prior year. The company also reported improved gross and operating profitability. AXTI Q2 Earnings Beat on Record InP Demand, Revenues Rise Y/Y
• Positive Sentiment: AI-related demand is accelerating: Management cited record InP revenue and strong demand from data-center optical connectivity customers. AXT plans to expand capacity and increase output while targeting further margin improvement. AXTI Q2 Earnings Call Highlights AI Capacity Expansion
• Positive Sentiment: Q3 guidance was well above consensus: AXT forecast earnings of $0.30-$0.32 per share and revenue of roughly $66 million, compared with analyst expectations of $0.10 EPS and $38.7 million in revenue. AXT Stock Rips Higher After Q2 Earnings
• Positive Sentiment: Analyst sentiment improved: Needham upgraded AXT from Hold to Buy and assigned a $90 price target. Heavy call-option buying also indicated increased bullish trading interest. Needham Upgrades AXT to Buy
• Neutral Sentiment: Despite the improved quarter, AXT’s trailing net margin remains negative and the stock continues to exhibit significant volatility, increasing the risk of sharp price swings after the rally.
• Negative Sentiment: Reported insider-trading data shows executives made multiple sales and no purchases during the past six months, which could temper investor confidence, although these transactions may not reflect current operating conditions.

Analyst Upgrades and Downgrades

AXTI has been the subject of several research analyst reports. Northland Securities set a $125.00 target price on shares of AXT in a research note on Wednesday, June 3rd. Weiss Ratings upgraded shares of AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 27th. UBS Group set a $90.00 price objective on shares of AXT in a report on Friday. Needham & Company LLC raised shares of AXT from a “hold” rating to a “buy” rating and set a $90.00 price objective for the company in a research report on Friday. Finally, B. Riley Financial reduced their target price on shares of AXT from $73.00 to $52.00 and set a “neutral” rating for the company in a research note on Tuesday. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, AXT has a consensus rating of “Hold” and an average target price of $77.00.

Insider Activity

In related news, Director Jesse Chen sold 6,172 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $115.24, for a total value of $711,261.28. Following the completion of the transaction, the director directly owned 50,275 shares in the company, valued at approximately $5,793,691. This represents a 10.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director David C. Chang sold 8,333 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $111.17, for a total value of $926,379.61. Following the completion of the transaction, the director owned 65,165 shares of the company’s stock, valued at $7,244,393.05. The trade was a 11.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 251,636 shares of company stock worth $27,789,677. Company insiders own 5.97% of the company’s stock.

Hedge Funds Weigh In On AXT

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. American Capital Advisory LLC acquired a new stake in shares of AXT during the 1st quarter valued at about $27,000. Kohmann Bosshard Financial Services LLC acquired a new position in AXT in the first quarter worth about $31,000. Leonteq Securities AG acquired a new position in AXT in the first quarter worth about $57,000. Tema ETFs LLC bought a new position in AXT during the second quarter worth about $105,000. Finally, KBC Group NV bought a new position in AXT during the first quarter worth about $88,000. 49.52% of the stock is owned by institutional investors.

AXT Stock Up 28.7%

The business has a fifty day simple moving average of $75.83 and a two-hundred day simple moving average of $61.74. The company has a market capitalization of $3.95 billion, a price-to-earnings ratio of 3,021.50 and a beta of 1.86.

AXT Company Profile

AXT, Inc (NASDAQ: AXTI) is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT’s product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.