By Adam Clark
AXT Inc. has been a superstar stock over the past year. But the semiconductor wafer substrate manufacturer was tumbling Tuesday on a stock offering and revenue guidance which appeared to disappoint the market.
AXT shares were down 6.4% at $73.70 in premarket trading. That puts a dent in its 5,867% gain in the past 12 months, as investors bet on explosive demand for its indium phosphide substrates, used for optical -- networking products within data centers.
Shares were falling after the company announced late Monday that it plans a stock offering. The company said there can be no assurance as to the size and terms of the offering.
AXT also said it is expecting a first-quarter net loss of between $1.6 million and $2.6 million. Quarterly revenue is expected between $26 million and $28 million, up from $19.4 million a year prior.
As of Monday's close, AXT had a market capitalization of $4.38 billion and traded at a forward price-to-earnings ratio of around 535 times, according to FactSet.
Write to Adam Clark at adam.clark@barrons.com
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April 21, 2026 07:39 ET (11:39 GMT)
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