AXT Inc. (NASDAQ:AXTI) is one of the 10 Stocks Dominating Today’s Market Action.
AXT soared to a new all-time high on Thursday, as investors began positioning portfolios ahead of the end of the first quarter of the year, supported by the company’s earlier optimistic outlook for the period, thanks to progress on its export permits.
In intraday trading, AXT Inc. (NASDAQ:AXTI) rose to its highest price of $58.13 before shedding a few cents to end the session up 19.13 percent at $58.09 apiece.
Earlier this year, AXT Inc. (NASDAQ:AXTI) released an optimistic outlook for the first quarter of 2026, saying it expects to achieve sequential revenue growth amid growing demand for indium phosphide for AI infrastructure development, supported by its progress on export permits, which were missing in the fourth quarter of 2025.
Indium phosphide is a high-performance semiconductor that is primarily used for high-speed electronics, optoelectronics, and photonics, and is crucial for various industries, including fiber optic communications, mobile networks, automotive lidars, and laser technologies, among others.
A semiconductor. Photo by Tima Miroshnichenko on Pexels
“We are significantly expanding our customer base to include Tier 1 companies to which we previously had limited exposure. We are also on track to double our indium phosphide manufacturing capacity this year and have a strong balance sheet to support our continued business expansion,” AXT Inc. (NASDAQ:AXTI) CEO Morris Young previously said.
While we recognize AXTI’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. Follow Insider Monkey on Google News.