On September 16, AXT Inc rose 8.58% in regular trading, trading at $62.29/share, with turnover of approximately $103 million. The rally came as signals of a persistent supply-demand imbalance in indium phosphide (InP) substrates continued to strengthen.

On the same day, Chinese manufacturer Guangzhi Technology disclosed that its 6-inch InP substrates had secured orders from a leading global customer, further confirming robust downstream demand. According to institutional estimates, global annual demand for InP substrates currently stands at approximately 2.6 to 3.0 million wafers, while effective production capacity is only around 750,000 wafers — implying a supply gap exceeding 70%. Critically, capacity expansion cycles span 18 to 36 months, suggesting the shortage could persist well into the medium term.

The move also marked a sharp reversal from September 14, when AXT Inc fell approximately 8.69% alongside broad weakness in the semiconductor equipment sector. Within the Semiconductor Equipment sector, the overall tone turned positive on September 16, with ASML Holding up 1.08%, Lam Research up 1.45%, KLA Corporation up 1.75%, Teradyne up 2.96%, and Applied Materials up 0.70%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)