AXT Inc Shares Soar 17% on Surging Indium Phosphide Demand, AI Boom
AXT Inc shares surged 17% to $53.18 on heavy volume, after a 2.6% gain over four weeks driven by surging indium phosphide demand and China’s AI data-center expansion. The company forecasts a $0.04 per share quarterly loss, narrowing 79% year-over-year, on revenues of $26.37 million, up 36.2%.
1. Stock Performance Jump
AXT Inc shares closed the latest session 17% higher at $53.18, driven by unusually high trading volume. This sharp move outpaced the stock’s 2.6% rally over the prior four weeks and marks one of the strongest single-day gains this quarter.
2. Market Drivers
The jump reflects robust demand for indium phosphide amid China’s rapid AI and data-center build-out, alongside a broader transition to advanced optical networking technologies. Expansion of the company’s Tier-1 customer base has further underpinned investor enthusiasm.
3. Financial Outlook
For the upcoming quarter, AXT Inc expects a $0.04 per share loss, a 79% improvement year-over-year, and projects revenues of $26.37 million, up 36.2%. Consensus EPS estimates have held steady over the past 30 days, while the stock carries a Zacks Rank of #3 (Hold).