AXT Inc. (NASDAQ: AXTI) experienced a substantial increase in its stock value on Thursday, recording a more than 19% jump during regular trading hours, followed by an additional 1.26% rise in after-hours activity. This notable market performance coincided with the semiconductor company's disclosure of its financial outcomes for the fourth quarter and the entire fiscal year ended December 31, 2025.
The company's fourth-quarter revenue for 2025 was reported at $23.04 million, a decrease from $28.0 million in the preceding quarter of 2025. This reduction was primarily attributed to fewer export permits than anticipated. Despite the revenue dip, AXT Inc. achieved an improved gross margin under generally accepted accounting principles, reaching 20.9% in Q4 2025, up from 17.6% in the same period of 2024. Furthermore, the net loss per share narrowed to $0.08, an improvement from $0.12 a year earlier.
Looking at the broader fiscal year 2025, AXT Inc.'s total revenue was $88.3 million, a decline from $99.4 million in 2024. The GAAP gross margin for the year faced significant compression, falling to 12.7% from 24.0%. Concurrently, the net loss per share expanded to $0.49, compared to $0.27 in the prior year. Despite these challenges, CEO Morris Young expressed optimism, noting that the company has secured some permits in early 2026 and anticipates sequential revenue growth in Q1, largely driven by the increasing demand for indium phosphide in artificial intelligence infrastructure development.
Morris Young also outlined the company's strategic initiatives, including plans to double its indium phosphide manufacturing capacity in 2026 and expand its clientele among top-tier customers. He emphasized AXT Inc.'s pivotal role as a fundamental supplier in the ongoing multi-year growth cycle fueled by AI infrastructure expansion. The company's market capitalization stands at $3.23 billion, with its stock currently trading near its annual peak, reflecting strong investor confidence.
AXT Inc.'s shares have demonstrated remarkable growth over the past year, soaring by 3,219.43%. With a Relative Strength Index (RSI) of 70.79, the stock shows strong momentum. Benzinga's Edge Stock Rankings further underscore this positive trend, indicating a robust price trajectory across all timeframes for AXTI. The company's established market position and ambitious expansion plans suggest continued potential for growth.
In conclusion, AXT Inc.'s recent financial report, while showing a mixed performance with revenue challenges, has been positively received by the market. The significant stock surge reflects investor confidence in the company's future prospects, particularly its strategic focus on indium phosphide production for AI infrastructure and its plans for capacity expansion and customer base growth.
