AXT Inc's stock experienced significant upward momentum during intraday trading, soaring 5.13% as investors reacted positively to recent company developments.

The surge follows AXT Inc's first-quarter earnings report that significantly exceeded market expectations, with an EPS loss of $0.03 compared to the consensus estimate of a $0.07 loss. Revenue reached $26.924 million, representing a 38.7% year-over-year increase. Additionally, Wedbush raised its price target on the stock from $28 to $80, reflecting increased analyst confidence.

The company's strong performance is driven by surging demand for 800G/1.6T optical modules in AI data centers, where AXT Inc holds a duopoly position in indium phosphide substrates. With a backlog exceeding $60 million and Q2 revenue guidance of $34 million along with expected profitability, the market remains optimistic about the company's growth trajectory amid ongoing capacity expansion efforts.