AXT Inc. director sells $780K shares amid strong growth but stock volatility and overvaluation concerns.

AXT Inc., a key supplier of advanced semiconductor materials for AI and data centers, saw a director sell 9,000 shares worth about $780,580 during a volatile period for its stock. Despite a 39.1% revenue increase in Q1 2026 and a backlog exceeding $100 million driven by AI demand, the stock price dropped sharply by over 29% in the past week. Some analysts consider AXT Inc. significantly overvalued, with a value estimate far below current prices. This insider sale is part of a broader trend, with insiders selling $40.3 million in shares over the last three months, raising questions about valuation despite strong business growth.