On August 5, AXT Inc rose 9.71% in regular trading, trading at approximately $74.69/share, with turnover of $254 million. The stock had declined 9.13% and 9.65% over the prior two sessions on profit-taking following a 42%-plus single-day surge on July 31, making the current move a technical oversold recovery.

On the fundamental side, AXT reported Q2 results on July 30 that significantly exceeded expectations. Revenue of $47.59 million far surpassed the consensus estimate of $34.09 million, while adjusted EPS of $0.19 beat the $0.07 estimate by 171%. Indium phosphide substrate revenue reached $30.7 million, a record quarter, with management characterizing the period as a business inflection point driven by AI data center demand. Adjusted gross margin expanded to 45.0% from 8.2% a year earlier.

On the capacity side, AXT signed a 3-year primary supply agreement with Coherent and a 6-year long-term agreement with Lumentum in late July, pushing InP backlog above $100 million. Wedbush maintained its outperform rating, noting the AI-fueled opportunity remains in early innings.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)