AXT Inc (AXTI) shares plummeted 12.23% in pre-market trading, extending losses from the previous session after the company significantly lowered its Q4 2025 revenue guidance. The semiconductor manufacturer's stock has been under heavy pressure due to weaker-than-expected financial projections.
The company revised its revenue forecast to $22.5 million-$23.5 million, down from its earlier estimate of $27 million-$30 million, citing fewer export control permits for indium phosphide issued by China's Ministry of Commerce. This reduction has disrupted AXT's ability to fulfill customer orders, leading to the downward revision. Analysts had expected revenue of $28.77 million, further amplifying investor concerns.
CEO Morris Young expressed disappointment but noted the company is working with Chinese authorities to secure additional permits in Q1 2026. AXT remains optimistic about expanding its indium phosphide capacity in the second half of the year, driven by AI-related demand. The company will report full Q4 results on February 19.
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