AXT Inc's stock experienced a significant pre-market decline of 5.06% on Monday, extending a pattern of pullbacks from recent record highs.
The drop follows sustained profit-taking pressure after the stock surged to all-time highs in late May following better-than-expected first-quarter earnings. The broader semiconductor equipment sector is also trading lower in the pre-market session, with key competitors showing declines, which has intensified selling pressure on AXT shares.
Additionally, market concerns about the evolution of silicon photonics technology potentially weakening long-term demand for indium phosphide substrates have added technical uncertainty to the stock's outlook, contributing to the downward movement.
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