AXT Inc. price target raised to $10 from $5 at Needham

Needham raised the firm’s price target on AXT Inc. (AXTI) to $10 from $5 and keeps a Buy rating on the shares. The company reported strong growth this quarter, with revenue of $28M well above guidance of $20M, driven by growth of InP shipments, as well as GaAs, the analyst tells investors in a research note. Gross margin improved to 22.4%, up 14% from Q2, while Data Center spending for AI-related upgrades is the key high-level driver of growth, with customers upgrading networking hardware with EML/Si-Pho based technologies which use InP, Needham added.