AXT Inc. (NASDAQ: AXTI) stock rallied 20.9% based on several reported factors. The company experienced high demand from AI computing applications, which contributed to the positive outlook. Wall Street's most accurate analysts included AXT among their stock picks for the week. B. Riley Securities maintained a Neutral rating on the stock while raising its price target to $21. In Q1 guidance, AXT projected adjusted earnings per share between negative $0.04 and negative $0.02 compared to an estimated negative $0.04, and projected sales of $26.0 million versus an estimated $26.752 million. The company reported Q4 2025 revenue of $23.0 million, down from $28.0 million in Q3 2025 and $25.1 million in Q4 2024.
Read full analysisAXT Inc. (NASDAQ: AXTI) stock rallied 20.9% based on several reported factors. The company experienced high demand from AI computing applications, which contributed to the positive outlook. Wall Street's most accurate analysts included AXT among their stock picks for the week. B. Riley Securities maintained a Neutral rating on the stock while raising its price target to $21. In Q1 guidance, AXT projected adjusted earnings per share between negative $0.04 and negative $0.02 compared to an estimated negative $0.04, and projected sales of $26.0 million versus an estimated $26.752 million. The company reported Q4 2025 revenue of $23.0 million, down from $28.0 million in Q3 2025 and $25.1 million in Q4 2024.
AXT manufactures compound semiconductor wafer substrates — particularly indium phosphide (InP) and gallium arsenide — used in fiber optics, data center connectivity, and AI infrastructure. The company operates partly through a Chinese subsidiary, making it sensitive to U.S.-China export permit dynamics that constrained Q4 shipments despite a record $60 million-plus indium phosphide backlog. The stock has been extraordinarily volatile since reporting Q4 results on February 19, with daily swings routinely exceeding 10% as the market digests the AI demand thesis against a still-unprofitable business now trading above even the most bullish analyst price target of $35.