AXT Inc's stock surged 6.06% during intraday trading on Friday, marking a significant upward movement for the semiconductor equipment company.

The stock's strong performance was driven by broad strength in the optical communications sector, with peer company Nokia reaching an all-time high and creating a positive linkage effect across the industry. Additionally, AXT Inc's first-quarter earnings exceeded expectations, showing a 38.7% year-over-year revenue growth and significantly narrowing losses.

Long-term demand expectations for AI optical communications remain intact, providing fundamental support for the company's outlook. The broader semiconductor equipment sector also showed positive momentum, with several major players posting gains, contributing to AXT Inc's rebound from its recent pullback after touching an all-time high earlier in the month.