AXT, Inc. (AXTI) AI Stock Analysis

AXT, Inc. designs, develops, manufactures, and distributes compound and single-element semiconductor substrates using proprietary vertical gradient freeze technology. Founded in 1986 and based in Fremont, California, the company supplies indium phosphide substrates for data center connectivity, 5G communications, fiber optic lasers, photonic integrated circuits, and silicon photonics. It also produces gallium arsenide substrates for Wi-Fi and IoT devices, transistors, satellite communications, screen displays, and 3-D sensing. Additionally, AXT manufactures germanium substrates for multi-junction solar cells and satellite detectors, alongside purified gallium, boron trioxide, gallium-magnesium alloy, and pyrolytic boron nitride products.

Between FY2021 and FY2025, revenue contracted from $137.4M to $88.3M, representing a 5-year CAGR of -1.5% from FY2020 to FY2025. After posting net income of $14.6M in FY2021 and $15.8M in FY2022, the company incurred consecutive net losses of -$17.9M in FY2023, -$11.6M in FY2024, and -$21.3M in FY2025, with gross margin dropping to 12.7% in FY2025. However, trailing twelve months revenue reached $125.5M with an operating margin of 21.9% and net margin of 3.2%. In the latest quarter ending June 30, 2026, quarterly revenue grew 164.8% year-over-year, while quarterly earnings declined 57.1%.

As of June 30, 2026, AXT held $417.2M in cash and short-term investments against total debt of $85.4M, resulting in net cash of $331.8M. Liquidity is supported by a current ratio of 4.77, while the debt-to-equity ratio stood at 0.10 against shareholders' equity of $887.3M. In FY2025, operating cash flow was -$12.8M and capital expenditures were $6.0M, leading to free cash flow of -$18.8M. Over a 5-year period, the company's share count increased 48.5%.

AXT carries a market capitalization of $3.38B and an enterprise value of $4.46B. The stock trades at a forward P/E of 30.8x, compared to the median of its US-listed Technology peers of 18.8x. Its enterprise value-to-revenue ratio is 35.5x and its price-to-sales multiple is 26.9x, compared to peer median price-to-sales of 2.8x. Over the past year, AXTI shares gained 944.0%, significantly outpacing the 16.8% return for the S&P 500 (SPY). Over a 5-year period, AXTI returned 530.0% compared to 83.0% for the benchmark.

Wall Street sentiment includes 3 Strong Buy, 1 Buy, and 1 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target of $91.60 sits 78.0% above the last close of $51.47. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $218.0M and EPS of $0.87, representing earnings growth of 311.7%. For the next fiscal year, 5 analysts expect revenue of $460.7M and EPS of $2.25. The company beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for October 29, 2026.

This page is an AI-written research summary of AXT, Inc. (AXTI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AXTI income statement, AXTI balance sheet, AXTI key metrics, AXTI analyst forecast, AXTI chart. See the AXTI stock overview for the latest quote and news.