AXT Inc Falls 9.4% After 25-Year High on Profit-Taking
AXT Inc shares fell 9.4% to $37.12 after hitting a 25-year high of $41.19, as investors took profits following a two-day rally. The company expects sequential Q1 revenue growth driven by indium phosphide sales after securing early 2026 export permits and plans to double capacity this year.
1. Share Price Decline
AXT Inc snapped a two-day rally, plunging 9.4% to close at $37.12 after reaching a 25-year high of $41.19 the previous session. The sell-off was driven by profit-taking following last year’s strong earnings and optimism around export permits.
2. Export Permits and Q1 Outlook
The company secured early 2026 export permits that management believes will support sequential revenue growth in the first quarter, particularly in indium phosphide supplies for AI infrastructure build-out.
3. Capacity Expansion Plans
AXT Inc plans to double its indium phosphide manufacturing capacity this year, aiming to meet rising demand from Tier-1 AI infrastructure customers and to broaden its customer base.
4. Recent Financial Results
In 2025, AXT Inc widened its net loss by 83% to $21.26 million on $88 million in revenue, while Q4 net loss narrowed by 31% to $3.5 million on $23 million in revenue, reflecting margin improvements despite lower sales.