AXT(NASDAQ) AXTI

AXT, Inc. makes materials for fast electronic chips. These materials help internet systems and smartphones work better. The company serves businesses building data centers and networks.

High-Performance Wafers for Data

• Indium Phosphide: Wafers used for high-speed data transmission in data centers and fiber optics; accounted for 67% of 2025 revenue when combined with other substrate products.
• Gallium Arsenide: High-performance materials for Wi-Fi devices, satellite communications, and power amplifiers in mobile phones.
• Germanium Substrates: Specialty wafers used in solar cells for satellites, optical sensors, and infrared detectors.
• Raw Materials: Purified gallium and pyrolytic boron nitride (pBN) crucibles used in semiconductor manufacturing; accounted for 33% of 2025 revenue.

Strategic Shifts and Growth

• Completed the relocation of gallium arsenide production lines to new facilities in China by 2020.
• Signed multiple long-term supply agreements for indium phosphide capacity with Lumentum, Coherent, and Casela in 2026.
• Increased ownership in its primary Chinese subsidiary, Tongmei, to approximately 86.1% in July 2026.
• Withdrew a Shanghai listing application in July 2026 to pursue an initial public offering on the Hong Kong Stock Exchange.

Securing the Supply Chain

AXT maintains a vertically integrated supply chain through partial ownership of raw material companies in China. This strategy provides pricing advantages and ensures a reliable supply of key inputs for its wafer manufacturing.

Momentum in the Numbers

• Total revenue rose 164.8% year over year to $47.6 million for the three months ended June 30, 2026.
• Substrate revenue increased 232.7% to $37.6 million for the three months ended June 30, 2026.
• Gross profit reached $21.4 million for the three months ended June 30, 2026, up from $1.4 million in the same period of 2025.
• Principal liquidity was $748.8 million as of June 30, 2026, following two secondary public offerings.
• The company recorded $2.0 million in dividends from its Chinese subsidiaries during the six months ended June 30, 2026.

Bottom Line

AXT has evolved from a general substrate manufacturer into a critical supplier for artificial intelligence and high-speed data centers. Its vertically integrated model and shift toward international exchanges support its long-term focus on advanced materials.