AXT Inc (AXTI) saw its shares plummet 18.47% in after-hours trading on Thursday after the company slashed its Q4 2025 revenue guidance. The semiconductor manufacturer's stock was heavily impacted by the disappointing update, reflecting investor concerns over its near-term financial performance.

The company revised its revenue expectations to $22.5 million-$23.5 million, down from its previous forecast of $27 million-$30 million, citing fewer-than-expected export control permits for indium phosphide issued by China's Ministry of Commerce. This reduction in permits has hindered AXT's ability to fulfill customer orders, leading to the downward revision. Analysts had anticipated revenue of $28.77 million, further exacerbating the negative market reaction.