AXT completes enlarged public equity offering for expansion

AXT ( (AXTI) ) has issued an announcement.

On December 29, 2025, AXT, Inc. entered into an underwriting agreement for a public offering of 7,098,492 shares of common stock at $12.25 per share, targeting gross proceeds of about $87 million, with a 30-day option granted to underwriters for an additional 1,064,773 shares that could lift total gross proceeds to roughly $100 million; the deal, led by Northland Securities with Wedbush Securities and Craig-Hallum as co-managers, was expected to close on or about December 30, 2025, and included customary representations, closing conditions and a 60-day lock-up commitment from AXT’s executives and directors. On the same day, the underwriters fully exercised the over-allotment option, securing an additional $13.0 million in anticipated gross proceeds and positioning AXT to direct the net funds toward expanding indium phosphide substrate manufacturing capacity at its Beijing Tongmei subsidiary for global export, supporting research and development, and strengthening working capital and general corporate resources, potentially enhancing its ability to meet growing demand in advanced compound semiconductor markets.

The most recent analyst rating on (AXTI) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on AXT stock, see the AXTI Stock Forecast page.

Spark’s Take on AXTI Stock

According to Spark, TipRanks’ AI Analyst, AXTI is a Neutral.

AXT’s stock score is primarily influenced by strong technical momentum, which is offset by weak financial performance and unattractive valuation. The earnings call provided some positive insights into revenue growth and margin improvements, but ongoing challenges in profitability and cash flow management remain significant concerns.

To see Spark’s full report on AXTI stock, click here.

More about AXT

AXT, Inc. is a materials science company that develops and manufactures high-performance compound and single-element semiconductor substrate wafers made from indium phosphide, gallium arsenide and germanium. Its wafers are used in applications where conventional silicon substrates are insufficient, serving end markets such as 5G infrastructure, data center connectivity and silicon photonics, passive optical networks, LED lighting, lasers, sensors, wireless power amplifiers and satellite solar cells. The company is headquartered in Fremont, California, with Asia headquarters and multiple manufacturing facilities in China, and maintains partial ownership stakes in several China-based raw material suppliers to support its supply chain.

Average Trading Volume: 3,302,798

Technical Sentiment Signal: Buy

Current Market Cap: $716.6M

For an in-depth examination of AXTI stock, go to TipRanks’ Overview page.