AXT Shares Surge as AI Demand Fuels Earnings Beat, Strong Outlook

AXT is a major supplier of indium phosphide, or InP, substrates, a critical material for the lasers and high-speed optical components that move data inside artificial-intelligence data centers. Demand has accelerated as hyperscalers expand computing capacity and upgrade network bandwidth. That makes AXT’s production ramp, order backlog and ability to secure Chinese export permits important gauges of whether the optical supply chain can keep pace with the broader AI infrastructure buildout.

AXT on July 30 reported second-quarter revenue of $47.6 million for the period ended June 30, up 77% sequentially and 164% from a year earlier. Adjusted earnings were $0.19 a share, topping the $0.07 consensus, while InP sales reached a record $30.7 million. The company projected third-quarter revenue of about $66 million and adjusted earnings of $0.30 to $0.32 a share. The shares jumped more than 25% in after-hours trading.