AXTI
AXT, Inc.

AXT, Inc.AXTI

Technology · Semiconductor Equipment & Materials
38.88USD
+5.88%
Nov 08, 2026
AXTI overview ready
Supplier of Indium Phosphide Substrates for High-Speed Optical Connectivity
AXT is an upstream compound-semiconductor materials supplier to optical connectivity hardware.
Theme not measured
Semiconductor Materials & Substrates has no leadership state this session.
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Fundamentals under pressure
Free cash flow yield is weak.
Primary risk
Declining revenue growth.
Market Nov 6Filing Jun 30Price action Nov 7Research Sep 30

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction1.4BusinessPerformance9.0BusinessQuality2.8Valuation0.3ThemeMomentum—Accelerating — Revenue growth has accelerated across 3 consecutive quarters, rising from -8.2% to +165% year over year. Earnings turned positive: diluted EPS of $0.17 against a loss of -$0.16 a year earlier. — Accelerating describes growth momentum measured in recent filed quarters. It is not proof that the acceleration will continue.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Semiconductor Materials & Substrates — Semiconductor Materials & Substrates is tracked (3–4 priced members) — too few for a leadership state
Its economic family, Semiconductors, reads Lagging (−22.2pp vs SPY) — the family’s reading, not this theme’s.
Price
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Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$2.5B
Avg Volume (60D)
10.0M
60 sessions
Revenue Growth YoY
-11.1%
FY2025 vs FY2024
Gross Margin
+32.2%
Trailing twelve months
Operating Margin
+3.1%
Trailing twelve months
Free Cash Flow Yield
-0.8%
Distance from 200DMA
-40.6%
P/E
628.9x
EV / EBITDA
158.9x
EV / Sales
17.0x
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Accelerating

Revenue growth has accelerated across 3 consecutive quarters, rising from -8.2% to +165% year over year. Earnings turned positive: diluted EPS of $0.17 against a loss of -$0.16 a year earlier.

Latest reported: Q2 FY2026, ended Jun 30
Revenue growthAccelerating
+165%
$47.6M in Q2 FY2026 · YoY
YoY growth, last 4 quarters
  1. +18%
  2. -8.2%
  3. +39%
  4. +165%
Earnings growthTurned profitable
$0.17
Diluted EPS $0.17 vs -$0.16 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
21.9%
+59.4 pp YoY · gross margin 44.9% (+36.9 pp)
Profit is not fully converting to cash
The share count is rising

Business Quality

2.8 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Only one valuation perspective could be built for this company, and it reads expensive.
AXT, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at 158.9x EBITDA and 17.0x revenue, which require sustained delivery to be justified.

Company Research

Thesis
AXT is an upstream compound-semiconductor materials supplier to optical connectivity hardware. Its indium phosphide substrates are used to produce lasers, detectors, and other optoelectronic devices required in high-speed data-center optical links.
Opportunity
High opportunity
AI-cluster buildouts require increasingly high-bandwidth, power-efficient optical connectivity, driving demand across optical modules, photonic components, lasers, detectors, and their specialized semiconductor-material supply chain.
Key risk
Declining revenue growth.

Economic classification

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Business & Markets

Technology · Semiconductor Equipment & Materials
What they do

AXT, Inc. designs, manufactures, and distributes compound and single element semiconductor substrates, primarily supplying materials used in optoelectronic devices for high-speed data and communication applications.

How it earns

The company generates revenue through transactional sales of semiconductor substrates to manufacturers of optical and electronic components.

Products & services
Indium phosphide semiconductor substrates
Compound semiconductor materials
Customers & end markets
Optical connectivity hardware manufacturers
Data center operators
5G communications equipment makers
Market position

Niche supplier specializing in compound semiconductor substrates for optical and photonic applications.

Demand drivers
Medium cyclicality

Demand is linked to capital spending cycles in data centers and telecommunications infrastructure.

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