AXT Inc's stock soared 9.61% during intraday trading on Friday, reaching new all-time highs as investor confidence surged following the company's strong financial results and positive outlook.

The rally was driven by the company's first-quarter earnings that significantly exceeded expectations, with an EPS loss of $0.03 compared to the consensus estimate of a $0.07 loss. Revenue grew 38.7% year-over-year to $26.924 million, while non-GAAP gross margin improved to 29.9%.

Market sentiment was further bolstered by Wedbush's substantial price target increase from $28 to $80, strong backlog orders exceeding $60 million, and positive second-quarter revenue guidance of $34 million with an expectation to achieve profitability. The sustained demand for the company's indium phosphide substrates, driven by AI data center high-speed optical transmission requirements, along with recent capital raising to fund capacity expansion, continues to reinforce investor confidence in its growth trajectory.