On August 27, AXT Inc rose 8.62% in pre-market trading, trading at approximately $70.92/share, with turnover of $2.569 million. The stock is recovering from an indiscriminate selloff triggered by NVIDIA's announcement that CPO technology has entered mass production.
On August 24, NVIDIA's CPO scale production announcement, combined with SK Hynix's CPO roadmap publication, sparked broad-based selling across the optical communication sector. AXT plunged over 8% that session. However, the market has since recognized that indium phosphide substrates remain irreplaceable as core light source materials within CPO architecture, and the prior selloff was an emotional overreaction. Downstream customers Lumentum and Coherent have both signed long-term supply agreements with AXT, with current supply-demand gaps exceeding 30%. The company plans to triple capacity by year-end, with demand already locked in.
This recovery follows strong fundamental momentum. AXT reported Q2 revenue growth of 165% year-over-year, with adjusted gross margin surging to 45.0% from 8.2% a year ago. Wedbush characterized the quarter as a business inflection point driven by data center applications and maintained an outperform rating.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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