AXT (AXTI) AI Stock Analysis

• Market Cap: $66.58M
• Dividend Yield: N/A
• Average Volume (3M): 254.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 21.44%
• EPS Growth: -8.49%
• Country: US
• Employees: 1,527
• Sector: Technology
• Sector Strength: 78
• Industry: Semiconductors
• EPS (TTM): -0.19
• Shares Outstanding: 45,603,683
• 10 Day Avg. Volume: 256,082
• 30 Day Avg. Volume: 254,289
• PEG Ratio: 0.44
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.85
• Price Target Upside: 163.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 52 Neutral
• Price Target: $1.50 ▲( 2.74% Upside)

AXT is struggling with financial challenges, notably declining revenues and negative profitability metrics. Technical indicators show some positive momentum, but the valuation is unattractive due to a negative P/E ratio. The earnings call highlighted improvements in cash reserves and cost management, but substantial revenue declines and operational issues cast a shadow over the company's outlook.

Positive Factors

Management Outlook

Management expects to obtain necessary licenses and resume sales of InP in the following quarter, viewing current challenges as temporary.

Revenue

Revenue exceeded expectations due to strong demand from data centers and growth in the raw materials business.

Negative Factors

Earnings

Earnings per share were lower than expected due to some gross margin challenges.

Guidance

Guidance for the upcoming quarter was below expectations primarily because of trade restrictions on InP imposed by China.

Licensing Delays

There is uncertainty going into the second half of the year due to potential further delays in licensing and additional tariff impacts.

AXT Business Overview & Revenue Model

Company Description

AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. It produces semiconductor substrates using its proprietary vertical gradient freeze technology. The company offers indium phosphide for use in data center connectivity using light/lasers, 5G communications, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonic integrated circuits, terrestrial solar cells, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LED, screen displays, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. AXT, Inc. sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.

How the Company Makes Money

AXT, Inc. generates revenue primarily through the sale of its high-performance semiconductor substrates to a diverse customer base. These substrates are critical components used in the production of LEDs, lasers, solar cells, and other electronic and optoelectronic devices. The company operates a vertically integrated business model, sourcing raw materials such as gallium and indium, which it processes into finished substrates at its manufacturing facilities. AXT's revenue streams are bolstered by strategic partnerships with key players in the semiconductor industry, enabling it to maintain a steady demand for its products. Furthermore, the company's focus on research and development supports its ability to innovate and expand its product offerings, thereby enhancing its market position and financial performance.

AXT Financial Statement Overview

Summary

AXT faces profitability challenges with negative margins and no free cash flow. The income statement indicates declining revenue trends and ongoing losses. The balance sheet is stable with moderate debt, but declining equity is concerning. The absence of free cash flow highlights operational efficiency issues.

Income Statement

The income statement shows a declining revenue trend with a recent revenue growth rate of 31.1%. However, the company has been operating at a loss, with a negative net profit margin of -11.7% and a negative gross profit margin of 24.0% in the latest year. This reflects ongoing profitability challenges.

Balance Sheet

The balance sheet is relatively strong with a moderate debt-to-equity ratio of 0.26 and an equity ratio of 56.8%, indicating good financial stability. However, declining stockholders' equity raises concerns about the company's ability to sustain its capital structure long-term.

Cash Flow

Cash flow analysis reveals no free cash flow, with both operating cash flow and free cash flow at zero. This may impact the company's ability to fund operations without external financing. The operating cash flow to net income ratio is undefined due to zero operating cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
99.36M	75.80M	141.12M	137.39M	95.36M
	Gross Profit
23.84M	13.32M	52.12M	47.41M	30.27M
	EBIT
-14.80M	-21.57M	12.55M	12.90M	-393.00K
	EBITDA
-338.00K	-8.78M	20.67M	19.98M	8.27M
	Net Income Common Stockholders
-11.62M	-17.88M	15.81M	14.57M	5.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.83M	39.89M	44.29M	42.18M	72.84M
	Total Assets
339.31M	358.70M	370.07M	332.44M	298.86M
	Total Debt
49.78M	55.73M	48.40M	16.05M	12.79M
	Net Debt
26.94M	17.98M	13.45M	-20.71M	-59.82M
	Total Liabilities
84.41M	89.56M	80.33M	52.21M	43.33M
	Stockholders Equity
192.77M	203.99M	221.61M	211.53M	192.62M
Cash Flow		Free Cash Flow
-17.88M	-7.07M	-37.23M	-32.95M	-13.99M
	Operating Cash Flow
-12.11M	3.40M	-8.77M	-3.31M	5.87M
	Investing Cash Flow
-4.45M	-2.60M	-25.22M	-38.81M	-16.42M
	Financing Cash Flow
-536.00K	8.61M	38.03M	5.72M	52.66M

AXT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXTI, the sentiment is Neutral. The current price of 1.46 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.43, and below the 200-day MA of 2.02, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.78 is Neutral, neither overbought nor oversold. The STOCH value of 58.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AXTI.

AXT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.28B	10.16	-6.88%	2.97%	7.41%	-8.93%
ASYS	52 Neutral	$58.11M	40.38	-47.90%	―	-16.52%	-46.13%
GSIT	52 Neutral	$83.21M	―	-33.15%	―	-5.73%	47.83%
AXTI	52 Neutral	$66.58M	―	-9.50%	―	21.44%	-8.49%
NA	47 Neutral	$63.61M	―	1716.04%	―	―	―
GCTS	42 Neutral	$55.01M	―	17.45%	―	94.76%	-146.39%
PXLW	41 Neutral	$30.85M	―	-2911.20%	―	-47.93%	-37.77%

AXT Corporate Events

AXT Holds Annual Meeting, Elects New Director

On May 15, 2025, AXT held its Annual Meeting of Stockholders, where 69% of the total shares entitled to vote were represented. During the meeting, Christine Russell was elected as a Class III director for a three-year term, the executive compensation was approved on an advisory basis, the 2025 Equity Incentive Plan was approved, and BPM LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (AXTI) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on AXT stock, see the AXTI Stock Forecast page.