AXT (NASDAQ:AXTI) Shares Gap Up Following Better-Than-Expected Earnings

Shares of AXT Inc (NASDAQ:AXTI) gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 EPS for the quarter, topping the consensus estimate of $0.07 by $0.12. AXT had a return on equity of 1.55% and a net margin of 3.23%.The company 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.

More AXT News

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.

Analysts Set New Price Targets

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

Insider Activity at AXT

In related 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 transaction of $14,007,701.33. Following the completion of the transaction, the chief executive officer owned 2,149,533 shares in the company, valued at $243,606,574.89. The trade was a 5.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jesse Chen sold 13,000 shares of the company’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $95.77, for a total value of $1,245,010.00. Following the transaction, the director owned 56,447 shares of the company’s stock, valued at approximately $5,405,929.19. The trade was a 18.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 251,636 shares of company stock worth $27,789,677 in the last 90 days. 5.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AXT

Hedge funds and other institutional investors have recently modified their holdings of the company. Assenagon Asset Management S.A. lifted its position in AXT by 161.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 1,505,354 shares of the semiconductor company’s stock valued at $85,775,000 after purchasing an additional 930,526 shares during the last quarter. CloudAlpha Capital Management Limited Hong Kong bought a new position in AXT in the 4th quarter worth about $22,738,000. Alyeska Investment Group L.P. acquired a new stake in shares of AXT in the fourth quarter valued at approximately $20,187,000. Jane Street Group LLC increased its stake in shares of AXT by 1,314.6% in the fourth quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company’s stock valued at $14,790,000 after purchasing an additional 840,650 shares during the period. Finally, Bank of America Corp DE raised its holdings in shares of AXT by 112.0% during the first quarter. Bank of America Corp DE now owns 776,300 shares of the semiconductor company’s stock valued at $44,234,000 after buying an additional 410,181 shares during the last quarter. Institutional investors and hedge funds own 49.52% of the company’s stock.

AXT Price Performance

The stock has a fifty day moving average price of $75.83 and a two-hundred day moving average price of $61.74. The company has a market cap of $3.95 billion, a P/E ratio of 3,021.50 and a beta of 1.86.

About AXT

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.