AXT Inc's stock plummeted 7.69% during intraday trading on Friday, extending a pattern of sharp pullbacks from recent record levels.

The decline comes as traders continue to take profits after the stock surged over 16% following strong Q1 earnings that beat expectations, with revenue up 38.7% year-over-year and losses significantly narrowed. Additionally, market concerns have emerged that the evolution of silicon photonics technology could weaken long-term demand for indium phosphide substrates, which represent AXT's core product line.

Notably, AXT's decline occurred against the broader trend in the semiconductor equipment sector, which traded higher today, indicating that stock-specific factors including profit realization pressure and technology moat durability concerns remain dominant near-term drivers.