AXT Inc's stock surged 5.04% in post-market trading, driven by positive analyst action and strong institutional confidence in the company's growth prospects.

The significant movement follows Wedbush's decision to boost its price target on AXT Inc from $28 to $80 while maintaining its Outperform rating. Additionally, the company's underwriters fully exercised the over-allotment option at $64.25 per share, raising approximately $632.5 million in total capital from the recent public offering.

The full exercise of the over-allotment option is viewed as a strong vote of confidence from institutional investors. Proceeds from the offering are earmarked for expanding semiconductor substrate production capacity and strengthening research and development to meet growing demand in 5G, data center, and optoelectronic applications.