AXT Inc. (NASDAQ:AXTI) is one of the 10 Stocks Dominating Today’s Market Action.
AXT soared to a new all-time high on Thursday, as investors began positioning portfolios before the end of the first quarter of the year, backed by the company’s earlier upbeat outlook for the period, thanks to progress on its export permits.
At intra-day trading, AXT Inc. (NASDAQ:AXTI) climbed to its highest price of $58.13 before trimming a few cents to end the session just up by 19.13 percent at $58.09 apiece.
Earlier this year, AXT Inc. (NASDAQ:AXTI) posted an optimistic outlook for the first quarter of 2026, saying that it expects to achieve sequential revenue growth amid demand growth in indium phosphide for the AI infrastructure build-out, supported by its progress in export permits, which were lacking in the fourth quarter of 2025.
Indium phosphide is a high-performance semiconductor primarily used for high-speed electronics, optoelectronics, and photonics, and is crucial for various industries, including fiber optic communications, mobile networks, automotive lidars, and laser technologies, among others.
A semiconductor. Photo by Tima Miroshnichenko on Pexels
“We are notably broadening our customer base to include Tier-1 companies to which we have previously had limited exposure. We are also on track to double our indium phosphide manufacturing capacity this year and have a strong balance sheet to support our continued business expansion,” said AXT Inc. (NASDAQ:AXTI) CEO Morris Young earlier.
While we acknowledge the potential of AXTI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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