AXT (NASDAQ:AXTI) Upgraded to “Buy” at Needham & Company LLC

AXT (NASDAQ:AXTI) was upgraded by Needham & Company LLC from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm presently has a $90.00 price objective on the semiconductor company’s stock. Needham & Company LLC’s price objective suggests a potential upside of 91.73% from the stock’s previous close.

AXTI has been the topic of a number of other research reports. Weiss Ratings raised shares of AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 27th. Northland Securities set a $125.00 price objective on shares of AXT in a report on Wednesday, June 3rd. Finally, B. Riley Financial cut their price objective on shares of AXT from $73.00 to $52.00 and set a “neutral” rating on the stock in a research report on Tuesday. Three 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. Based on data from MarketBeat, AXT currently has an average rating of “Hold” and an average target price of $66.00.

AXT Price Performance

NASDAQ:AXTI opened at $46.94 on Friday. AXT has a fifty-two week low of $1.85 and a fifty-two week high of $143.16. The stock has a market capitalization of $3.07 billion, a PE ratio of -151.41 and a beta of 1.86. The business’s 50-day simple moving average is $77.44 and its 200-day simple moving average is $61.74.

AXT (NASDAQ:AXTI) last issued its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.12. AXT had a negative return on equity of 5.71% and a negative net margin of 14.69%.The business had revenue of $47.59 million during the quarter, compared to analyst estimates of $34.08 million. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. On average, research analysts expect that AXT will post 0.19 earnings per share for the current year.

Insider Activity at AXT

In other AXT news, CEO Morris S. Young sold 123,601 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $113.33, for a total value of $14,007,701.33. Following the sale, the chief executive officer owned 2,149,533 shares in the company, valued at approximately $243,606,574.89. The trade was a 5.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director David C. Chang sold 8,333 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $111.17, for a total value of $926,379.61. Following the transaction, the director directly owned 65,165 shares of the company’s stock, valued at approximately $7,244,393.05. This trade represents a 11.34% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 251,636 shares of company stock valued at $27,789,677. 5.97% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. American Capital Advisory LLC bought a new position in AXT in the first quarter valued at $27,000. Kohmann Bosshard Financial Services LLC bought a new stake in AXT during the 1st quarter worth about $31,000. XTX Topco Ltd bought a new stake in AXT during the 2nd quarter worth about $42,000. Jefferies Financial Group Inc. acquired a new position in shares of AXT during the 3rd quarter worth about $52,000. Finally, Leonteq Securities AG acquired a new position in shares of AXT during the 1st quarter worth about $57,000. Institutional investors and hedge funds own 49.52% of the company’s stock.

Key AXT News

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: AXT reported earnings of $0.19 per share versus the $0.07 consensus estimate, while revenue reached $47.59 million compared with expectations of approximately $34 million. The quarter marked a substantial improvement from the $0.15-per-share loss reported a year earlier. AXT Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Very strong Q3 guidance: Management projected revenue of $66 million and EPS of $0.30-$0.32 for the third quarter, well above analyst estimates of roughly $38.7 million in revenue and $0.10 EPS. The outlook suggests accelerating customer demand and operating leverage. AXT Stock Rips Higher After Q2 Earnings
• Positive Sentiment: AI-related demand is supporting growth: AXT cited strong demand for data-center optical connectivity, helping drive revenue growth and improved profitability. Management described the business as reaching an inflection point. AXT Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Long-term customer agreement: AXT secured a multiyear indium phosphide wafer supply and capacity-reservation agreement with Lumentum, providing greater visibility into future demand. AXT Announces Long-Term Supplier Agreement with Lumentum
• Neutral Sentiment: Insider selling remains a risk to monitor: A third-party analysis reported 33 insider sales and no purchases during the past six months. These transactions may reflect scheduled selling, but they could temper investor enthusiasm after the rally.
• Negative Sentiment: Valuation and volatility are elevated: The stock remains well above its 50-day and 200-day moving averages, while its price-to-earnings ratio is negative. This leaves shares vulnerable to profit-taking if AI-related growth or future guidance falls short.

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.