AXT (NASDAQ:AXTI) Stock Moved Up to "Strong-Buy" by Zacks Research

Key Points

• Zacks Research upgraded AXT from “hold” to “strong buy.” Across analysts, the stock carries a “Moderate Buy” consensus rating and an average price target of $77.80.
• AXT beat quarterly expectations, reporting EPS of $0.41 versus estimates of $0.31 and revenue of $73.41 million versus $66 million. Separate coverage cited 162% revenue growth and a backlog above $500 million, reflecting demand for InP products used in AI infrastructure.
• Despite strong operating results, the article flags valuation and profit-taking risks after a roughly 191% stock rally; AXT shares opened at $36.72 on Wednesday.

AXT (NASDAQ:AXTI - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Wednesday, Zacks reports.

A number of other analysts have also commented on the company. UBS Group set a $90.00 price objective on AXT in a research note on Friday, July 31st. Weiss Ratings raised shares of AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. Needham & Company LLC upgraded shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 target price on the stock in a report on Friday, July 31st. Finally, B. Riley Financial upped their target price on shares of AXT from $55.00 to $56.00 and gave the company a "neutral" rating in a report on Friday, October 30th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $77.80.

AXT Price Performance

Shares of AXT stock opened at $36.72 on Wednesday. AXT has a 1 year low of $7.81 and a 1 year high of $143.16. The company has a market capitalization of $2.41 billion, a P/E ratio of 81.60 and a beta of 2.01. The business has a 50 day moving average price of $64.56 and a 200 day moving average price of $64.53.

AXT (NASDAQ:AXTI - Get Free Report) last announced its earnings results on Thursday, October 29th. The semiconductor company reported $0.41 EPS for the quarter, beating analysts' consensus estimates of $0.31 by $0.10. AXT had a return on equity of 5.21% and a net margin of 18.53%. The firm had revenue of $73.41 million for the quarter, compared to analysts' expectations of $66.00 million. As a group, research analysts expect that AXT will post 1.11 EPS for the current fiscal year.

Insiders Place Their Bets

In other AXT news, Director Leonard Leblanc sold 4,000 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $96.07, for a total transaction of $384,280.00. Following the completion of the sale, the director owned 113,129 shares of the company's stock, valued at approximately $10,868,303.03. The trade was a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 5.97% of the company's stock.

Hedge Funds Weigh In On AXT

A number of large investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of AXT during the second quarter worth about $365,607,000. Bank of America Corp DE acquired a new position in shares of AXT in the second quarter worth about $46,062,000. Wellington Management Group LLP acquired a new position in shares of AXT in the second quarter worth about $25,911,000. Rokos Capital Management LLP purchased a new position in AXT in the first quarter valued at about $18,842,000. Finally, Squarepoint Ops LLC boosted its holdings in AXT by 1,347.0% in the second quarter. Squarepoint Ops LLC now owns 312,999 shares of the semiconductor company's stock valued at $22,561,000 after purchasing an additional 291,368 shares during the last quarter. 49.52% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT’s Q3 revenue rose 162%, and the company reported a backlog exceeding $500 million, pointing to strong demand for indium phosphide (InP) products used in AI infrastructure. Article: Should You Buy, Sell or Hold AXTI Stock After Its Strong Q3 Results?
• Positive Sentiment: Northland Securities raised its earnings estimates across upcoming quarters, lifting its FY2026 EPS forecast to $1.15 from $0.81 and FY2027 to $2.29 from $2.03. These revisions signal greater analyst confidence in future growth. MarketBeat AXT coverage
• Positive Sentiment: Zacks included AXTI among four Strong Buy AI-related stocks, citing demand for AI infrastructure and semiconductors as a potential growth driver. Article: 4 Strong Buy AI Stocks to Consider Amid the Tech Selloff
• Negative Sentiment: The stock’s roughly 191% rally has raised valuation concerns, increasing the risk of profit-taking—especially as technology shares face a broader selloff. This may help explain the recent pullback despite strong operating results. Article: Should You Buy, Sell or Hold AXTI Stock After Its Strong Q3 Results?

AXT Company Profile

AXT, Inc develops and manufactures compound semiconductor substrates used as the foundation for various high-performance electronic and optoelectronic devices. Its principal products include gallium arsenide (GaAs), indium phosphide (InP), and germanium substrates, along with other specialty materials such as gallium antimonide and indium arsenide.

The company's substrates are used in applications including wireless communications, fiber-optic and data-center networks, lasers, light-emitting diodes, solar cells, consumer electronics, and aerospace and defense systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.