AXT Inc. (NASDAQ:AXTI) surged 1.26% to $58.82 in after-hours trading on Thursday.

The late-trading session jump follows a 19.13% gain in the regular session, with the stock closing at $58.09, according to Benzinga Pro data.

The moves came as AXT reported its fourth quarter and fiscal year 2025 financial results for the period ended December 31, 2025.

Q4 2025: Margins Improve Despite Revenue Dip

Fourth-quarter revenue for AXTI fell to $23.04 million from $28.0 million in the third quarter of 2025, constrained by fewer-than-expected export permits.

Generally accepted accounting principles gross margin improved year over year to 20.9% from 17.6% in the fourth quarter of 2024.

Net loss also narrowed to $0.08 per share versus $0.12 a year ago.

CEO Morris Young said, “We are pleased to report that we have received some permits to date in 2026 and believe we are in a strong position to achieve sequential revenue growth in Q1, driven primarily by growth in indium phosphide for the AI infrastructure build-out."

Fiscal Year 2025: Margin Compression Flags Caution

AXTI's revenue for the full year 2025 fell to $88.3 million, down from $99.4 million in 2024.

The GAAP gross margin for the California-based semiconductor company compressed sharply to 12.7%, down from 24.0%, while the net loss widened to $0.49 per share compared with $0.27 the previous year.

Long-Term Conviction

Young also highlighted plans to double indium phosphide manufacturing capacity in 2026 and expand its Tier-1 customer base, describing AXTI as “a foundational supplier to this multi-year growth cycle” tied to AI infrastructure buildouts.

Trading Metrics, Technical Analysis

AXT has a market capitalization of $3.23 billion, with a 52-week high of $58.13 and a 52-week low of $1.13.

The Relative Strength Index (RSI) of AXTI stands at 70.79.

Over the past 12 months, the small-cap stock has gained 3,219.43%.

AXTI is currently trading near its annual high.

The company's long-term trajectory and solid market position indicate that the stock likely retains upside potential.

With a strong Momentum in the 99th percentile, Benzinga’s Edge Stock Rankings indicate that AXTI has a positive price trend across all time frames.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.