AXT Inc's stock surged 6.77% during intraday trading on Thursday, marking a significant rebound for the semiconductor equipment company.

The sharp rise represents an oversold rebound after the stock experienced consecutive trading sessions with declines exceeding 5% following its recent all-time high. The previous pullback was driven by concentrated profit-taking pressure that emerged after a rapid ascent fueled by the company's strong first-quarter earnings report, which showed revenue growth of 38.7% year-over-year and significantly narrowed losses.

Bargain-hunting buyers have returned to the stock as the fundamental investment thesis remains intact, with long-term demand expectations for AI optical communication unchanged. The broader semiconductor equipment sector also provided additional support, with improved sector-wide sentiment contributing to the individual stock's recovery.