AXT sees 165% revenue growth in Q2 2026, driven by AI and optical demand, with strong profits and cash for expansion.

AXT, Inc. reported a major financial turnaround in Q2 2026, with revenue rising 165% year-over-year and gross margin expanding to 45%. The company swung to a GAAP net income of $11.1 million, fueled by strong demand for indium phosphide (InP) used in AI infrastructure and optical connectivity. With $716 million in cash and investments, plus customer prepayments, AXT is expanding InP production capacity aggressively without incurring significant debt. The company is rated a buy due to its rapid earnings growth and margin improvements, assuming continued strong execution.

AXTI shares trade at USD 82.81 on Pluang as of Oct 02, 2026 15:31 WIB, up 1.22% for the day. Despite the recent surge in revenue and margins reported by AXT, Pluang investors show a cautious stance with 67% selling activity versus 33% buying. The stock remains well below its 52-week high of USD 140.83, reflecting ongoing market evaluation of its long-term growth potential.