AXT Inc's stock plummeted 5.20% during intraday trading on Tuesday, marking a significant pullback for the semiconductor equipment company.
The decline appears to be driven by profit-taking pressure, as the stock had recently surged over 16% to break above its previous all-time high. This rally was fueled by strong first-quarter earnings, which showed a 38.7% year-over-year revenue increase with significantly narrowed losses, alongside robust demand for AI optical communication technology.
Notably, the broader Semiconductor Equipment sector performed strongly during the same session, with peers like Applied Materials, Lam Research, KLA-Tencor, and Teradyne posting gains of 3-6%. AXT Inc's decline against this positive sector trend underscores the pronounced profit-taking pressure following its recent parabolic advance.