On July 6, AXT Inc rose 9.33% in regular trading, trading at approximately $62.08/share, with turnover of $69.15 million.

On the news front, AXT's subsidiary Beijing Tongmei signed a three-year master development and supply agreement with Coherent, a key CPO supply partner of NVIDIA, for 6-inch indium phosphide wafer substrates. The agreement became effective on June 25, with Coherent prepaying approximately $22.29 million. The SEC filing confirmed the formal execution of this strategic partnership.

The agreement comes amid a global indium phosphide substrate supply-demand gap exceeding 70%, with lead times extending beyond 24 weeks. This long-term contract locks in upstream critical material supply for Coherent while delivering significant cash flow improvement to AXT through the substantial prepayment. The stock had previously been under pressure from semiconductor equipment sector weakness and executive share sales, making this deal a catalyst for a recovery rally as market confidence in earnings visibility strengthened considerably.

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