AXT, Inc. (NASDAQ:AXTI) is one of the 10 Best Performing Stocks of Q1 2026 to Watch for Q2. On March 18, B. Riley said it is “incrementally cautious” on AXT, Inc. (NASDAQ:AXTI) after seeing negative data points in the indium phosphide (InP) supply chain.
According to the research firm, one major company rejected the idea that there is an InP bottleneck, while another confirmed a seven-year supply deal with Sumitomo, AXT, Inc.’s (NASDAQ:AXTI) main competitor. B. Riley has a Neutral rating on AXT, Inc. (NASDAQ:AXTI).
This news follows a disappointing fourth quarter in 2025 for the company. AXT, Inc. (NASDAQ:AXTI) said that it did not receive as many export permits in the quarter as it had hoped. However, it pointed out that it has already received some permits in 2026 and believes it is in a strong position to achieve sequential revenue growth in the first quarter of 2026. This growth is expected to be driven mainly by growth in indium phosphide used in building AI infrastructure.
Additionally, AXT, Inc. (NASDAQ:AXTI) said it is notably expanding its customer base to include Tier-1 companies to which it had limited exposure previously. The company is also on track to double its indium phosphide manufacturing capacity in 2026.
AXT, Inc. (NASDAQ:AXTI) is a material science company that develops and manufactures semiconductor substrate wafers. The company’s wafers are made up of indium phosphide (InP), gallium arsenide (GaAs), and germanium (Ge).
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