On June 5, AXT Inc declined 5.57% in pre-market trading, trading at $100.5/share, with trading volume of $8.18 million, extending the ongoing high-level correction.

The decline is driven by multiple factors. The stock previously surged over 16% on May 22 after Q1 earnings beat expectations — revenue grew 38.7% year-over-year to $26.92 million while net losses narrowed 85.2% — propelling shares to all-time highs on strong AI optical communication demand. Since then, sustained profit-taking has weighed on the stock, with cumulative pullback exceeding 20% from peak levels.

Adding to the pressure, CEO Morris S Young sold 197,498 shares on June 1-2 at prices around $112-113 per share, while Director Jesse Chen filed to sell approximately 109,526 shares valued at $11.59 million. The semiconductor equipment sector is broadly weak today, with ASML down 4.14%, Applied Materials down 4.42%, Lam Research down 5.03%, and KLA down 4.16%, compounding individual stock selling pressure. Market concerns over silicon photonics potentially displacing indium phosphide substrate demand also persist as a longer-term overhang.

(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.)