On July 8, AXT Inc fell 8.47% in regular trading, trading at $58.215/share, with turnover of $379 million. The stock retreated as the broader semiconductor equipment sector experienced significant systematic selling pressure.

AXT Inc had surged over 12% in the prior session following news that its subsidiary Beijing Tongmei signed a three-year 6-inch indium phosphide wafer substrate development and supply agreement with Coherent, receiving approximately $22.29 million in prepayment. Today, the stock gave back gains amid a sector-wide pullback, with peers including Teradyne down 11.67%, KLA-Tencor down 8.70%, Lam Research down 8.29%, Applied Materials down 8.06%, and ASML down 5.12%.

Despite the short-term correction, the company recently secured multiple long-term supply agreements amid a global indium phosphide substrate supply-demand gap exceeding 70% and lead times extending beyond 24 weeks, positioning it as a key upstream material supplier in the AI data center optical communication buildout.

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