AXT, Inc. (AXTI) Stock

AXT, Inc. (AXTI) is a Technology stock trading at $73.00 (as of 2026-08-20), with a market capitalization of $4.79B and a trailing P/E of 780.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

AXT, Inc. designs, develops, manufactures, and distributes semiconductor substrates, including indium phosphide, semi-insulating gallium arsenide, and semi-conducting gallium arsenide. These substrates are used in applications such as data center connectivity, 5G and other RF systems, photonics and silicon photonics, LEDs and displays, lidar and sensing for robotics, infrared imaging, and solar cells.

Understand AXT, Inc.: how it makes money

AXT designs, develops, manufactures, and distributes compound and single element semiconductor substrates using its proprietary vertical gradient freeze technology, and generates revenue by selling substrates including indium phosphide for uses such as data center connectivity, 5G communications, photonics, lidar, and motion control.

Because AXT reports a large share of its net inventory as raw materials and work in process (46%), its profit model depends on converting inventory through production into substrate and material revenue rather than holding mostly unconverted inputs.

Business quality (Weak): Recent results show positive gross margin (29.6%) but negative operating margin (-5.9%), alongside very small reported revenue for the quarter (revenue_b rounds to 0.0B), which makes profitability and revenue scale hard to assess from one period.

Bull case

Proprietary substrate technology tied to multiple end markets: AXT uses vertical gradient freeze technology to produce semiconductor substrates, with its products described for data center connectivity, 5G, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonic integrated circuits, lidar, and infrared motion control.
Some revenue and customer visibility metrics provided: The company discloses inventory levels (Net Inventory) and customer concentration (Top Five Customer Revenue Concentration), which can help monitor operating execution.

Bear case

Operating losses despite positive gross margin: Gross margin is 29.6%, but operating margin is -5.9% for the quarter, indicating operating expenses exceed gross profit.
Working capital mix suggests heavy input accumulation: Raw Materials and Work in Process as a Percentage of Net Inventory is 46.0%, while Finished Goods as a Percentage of Net Inventory is 4.0%, which can indicate slow conversion into salable output.
Concentration risk: Top Five Customer Revenue Concentration is 35.9%, which implies meaningful dependence on a limited group of customers.

Valuation — source: SEC EDGAR (first-party)
Price	$73.00
Market Cap	$4.79B
P/E Ratio	780.9
EV / EBITDA	194.7
Price / Book	5.25
Price / Sales	36.99
FCF Yield	-1.2%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$88.33M
Net Margin	-24.1%
Revenue Growth (YoY)	-11.1%
EPS Growth (YoY)	81.5%
FCF Growth (YoY)	5.0%

Financial Health — source: SEC EDGAR
Altman Z-Score	18.00 (safe)
Piotroski F-Score	2/9 (weak)

Valuation vs Sector & Industry
Stock P/E	780.9
Sector P/E (Technology)	33.9
Industry P/E (Electronic Equipment)	39.4
vs Sector	2201.5%
vs Industry	1882.5%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	JANE STREET GROUP, LLC ($138.25M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Electronic Equipment
CEO	Morris S. Young
Employees	1,527
Country	US
IPO Date	1998-05-21

Related Companies (Business model: Fabless Semiconductors; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.