AXT Inc's stock soared 5.84% during intraday trading on Tuesday, marking a significant rebound from recent losses.

The surge represents an oversold bounce after the stock experienced consecutive trading sessions of declines exceeding 5%, which had pulled it back more than 25% from its all-time high. The buying interest emerged as the company's fundamental outlook remains intact, driven by better-than-expected first-quarter earnings that showed revenue growing 38.7% year-over-year and losses narrowing significantly.

Long-term expectations for robust AI optical communication demand continue to support the stock, with the recent price action highlighting counter-trend strength even as the broader semiconductor equipment sector showed weakness during the session.