AXTI
AXT, Inc.

AXT, Inc.AXTI

Technology · Semiconductor Equipment & Materials
77.79USD
-2.68%
Sep 23, 2026
AXTI overview ready
Supplier of Indium Phosphide Substrates Enabling High-Speed Optical Connectivity
AXT is an upstream compound-semiconductor materials supplier whose indium phosphide substrates are used by customers making lasers, photodetectors and other photonic devices for high-speed optical connectivity.
Strong narrative exposure
Exposed to the AI Compute Infrastructure Buildout narrative through AI Networking and Optical Interconnect — bottleneck supplier.
Price trend is broken
Longer-term context reads extended trend, with a near-term setup of daily advance.
The tactical setup reads daily advance, 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
Dependence on cyclical semiconductor industry demand.
Market Sep 22Filing Jun 30Price action Sep 22Research Aug 30

Conviction Level

NarrativeHeat9.5ThemeHeat9.1PriceAction7.4Valuation0.3CompanyPosition7.3
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads extended trend, with a near-term setup of daily advance.
The tactical setup reads daily advance, but the weekly structure is broken.
EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$5.1B
Avg Volume (60D)
10.8M
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
-0.4%
Distance from 200DMA
+34.7%
Next Earnings
2026-10-29
P/E
1258.2x
EV / Sales
37.4x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

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 37.4x revenue, which requires sustained delivery to be justified.

What changed

  • AXTI rose 14.1% in one session
    AXTI closed +14.1% against a broad market that moved +1.6%.
    2026-09-21

Company Research

Thesis
AXT is an upstream compound-semiconductor materials supplier whose indium phosphide substrates are used by customers making lasers, photodetectors and other photonic devices for high-speed optical connectivity. It also sells gallium arsenide and germanium substrates into communications, consumer, sensing and other markets.
Opportunity
High opportunity
AI-cluster scaling is increasing demand for high-bandwidth, power-efficient optical links, including the photonic devices, transceivers, lasers and enabling semiconductor materials required for intra-data-center and data-center-interconnect fabrics.
Key risk
Dependence on cyclical semiconductor industry demand.

Narrative & Theme

AI Compute Infrastructure Buildout
Part of AI Networking and Optical Interconnect, with strong fit.
AXTI is a direct upstream beneficiary of the same AI optical-connectivity demand system represented in the active AI Compute Infrastructure Buildout narrative.
Narrative HeatHot9.5 / 10
Theme HeatHot9.1 / 10

Business & Markets

Technology · Semiconductor Equipment & Materials
What they do

AXT, Inc. designs, manufactures, and distributes semiconductor substrates used in various high-tech applications, operating primarily through product sales to technology manufacturers.

How it earns

The company generates revenue through transactional sales of semiconductor substrate products.

Products & services
Indium phosphide semiconductor substrates
Compound and single element semiconductor substrates
Customers & end markets
Data center connectivity manufacturers
5G communications equipment makers
Fiber optic laser and detector producers
Consumer electronics manufacturers
Autonomous vehicle and robotics companies
Market position

Niche player specializing in compound semiconductor substrates within the semiconductor equipment and materials industry.

Demand drivers
Medium cyclicality

Demand is linked to technology investment cycles and end-market adoption of advanced communications and sensing technologies.