AXT Expects Record Revenue As Massive AI Networking Demand Builds $100 Million Order Backlog

Key Stats for AXT Stock

• Price change for AXT stock: -10%
• $AXTI Share Price as of Jun. 24: $70
• 52-Week High: $143
• $AXTI Stock Price Target: $97

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What Happened?

AXT (AXT) stock moved higher after the company reported a strong Q1 and issued guidance that points to a potentially record-breaking Q2.

Q1 revenue came in at $26.9 million, up from $23 million in Q4 2025 and just $19.4 million a year ago.

Indium Phosphide — the company’s most important product — generated $13.6 million of that, mostly from data center applications.

Gross margins also jumped sharply, rising to nearly 30% from negative 6% a year ago.

But the bigger story is what’s coming next.

Management said Q2 is on track to be the company’s best-ever quarter for Indium Phosphide revenues, surpassing the previous record of $17 million set back in 2022.

The key number to know: AXT already has $34 million in Q2 revenue locked in. That includes shipments with export permits already approved, plus orders that don’t need permits at all.

That baseline alone signals strong sequential growth. And management says there’s room for more if additional export permits come through.

What’s driving all this? AI infrastructure.

• Hyperscalers in the U.S. are spending heavily on data center upgrades that require optical networking components made from Indium Phosphide wafers.
• China is also ramping up its own AI supply chain investments. AXT’s China-related Indium Phosphide revenues more than doubled in Q1 and are expected to double again in Q2.

The company’s Indium Phosphide backlog has now crossed $100 million — a new all-time high.

AXT stock is also benefiting from a capacity expansion story. The company plans to double its Indium Phosphide output by year-end, with another doubling targeted for 2027.

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What the Market Is Telling Us About AXT Stock

AXT stock is moving on genuine fundamental momentum.

The combination of a record backlog, secured Q2 revenue, and surging AI-driven demand gives investors more visibility than usual for a company this size.

Export permit uncertainty remains a risk, but the business is clearly inflecting.

Investors are starting to price in what a multi-year capacity buildout could mean for earnings.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!