AXT Inc's stock soared 6.99% during intraday trading on Thursday, building on significant pre-market momentum.

The surge follows two key positive developments for the semiconductor substrate manufacturer. First, analysts at Wedbush significantly boosted their price target on AXT Inc from $28 to $80 while maintaining an Outperform rating. Second, the company's underwriters fully exercised the over-allotment option from a recent public offering at $64.25 per share, raising approximately $632.5 million in total capital.

The capital raise is viewed as a strong vote of confidence from institutional investors. According to reports, the proceeds are earmarked for expanding semiconductor substrate production capacity and strengthening research and development efforts to meet growing demand in 5G, data center, and optoelectronic applications.