Fact Summary
AXT closed at $81.64 on the Nasdaq on 2026-08-14 (+5.41% vs. the previous day). In its Q2 2026 results announced on 2026-07-30, revenue reached a record quarterly high of $47.6 million (+77% quarter-over-quarter, +164% year-over-year), and GAAP operating income turned positive at $10.42 million (versus -$6.70 million in Q2 2025). The company signed long-term indium phosphide (InP) wafer supply agreements with Coherent, Casella, and Lumentum, each including upfront deposits, and its subsidiary Tongmei withdrew its Shanghai Stock Exchange listing application on 2026-06-26, shifting instead toward a Hong Kong Stock Exchange listing.
Price-Change Context Note
The 2026-08-14 rally extended the upward move that formed after the Q2 2026 results (record revenue, return to operating profit) were announced on 2026-07-30; optical-communications-related stocks (Applied Optoelectronics, Lumentum, Corning) also rose the same day. The 8/14 volume of 9.63 million shares was below the recent 20-day average volume of 11.83 million shares, appearing as an extension of the elevated trading levels that have continued since late July.
Business Overview and Product Revenue Mix
AXT is a materials science company founded in 1986 that manufactures InP (indium phosphide), GaAs (gallium arsenide), and Ge (germanium) compound and elemental semiconductor substrates through its Beijing, China-based subsidiary Tongmei. The Q2 2026 revenue mix by product (secondary source, compiled from company disclosures) is as follows.
As of 2026-07-30 · Source: semiconductor-today (secondary source, compiled from company disclosures) — the original press release does not break out figures by product
5-Year Annual Revenue Trend
Quarterly Revenue and Operating Income Trend (Q3 2025-Q2 2026)
Capital Structure Changes (Before/After the April 2026 Large Equity Offering)
Valuation (Fact-Based Multiples)
Competitive Landscape
| Competitor | Location | Fact-Based Notes |
|---|---|---|
| Sumitomo Electric | Japan (unlisted division) | Top-tier in both the GaAs and InP markets; division-level financials not separately disclosed |
| Freiberger Compound Materials | Germany (private) | One of the top 3 GaAs/InP suppliers; financial figures not disclosed |
| JX Advanced Metals | Japan (Tokyo Stock Exchange-listed) | On 2026-06-16, announced plans to invest up to JPY 120B over the next 4 years to expand InP production capacity (targeting a 7-10x increase versus fiscal year 2025) |
| IQE plc | United Kingdom (London Stock Exchange-listed) | Focused on epitaxial wafers; H1 2026 revenue of at least GBP 64M, no bank debt (as of 2026-06-30) |
Governance and Capital Markets Disclosure History
Independent director ratio approx. 83% The board was expanded twice, in June and July 2026, growing from 4 to 6 members (Tracy Liu and Jia-Bin Duh newly appointed; 5 of 6 members independent).
| Date | Event |
|---|---|
| 2025-12-30 | Announced a common stock public offering of approx. $87M |
| 2026-01-26/29 | Leonard J. LeBlanc's independence reaffirmed and designated as Audit Committee chair |
| 2026-04-21~22 | Common stock public offering of 8,559,311 shares (at $64.25/share, raising approx. $632.5M including over-allotment) |
| 2026-06-17 | Tracy Liu appointed as independent director (board expanded from 4 to 5) |
| 2026-07-16/22 | Jia-Bin Duh appointed as independent director (board expanded from 5 to 6) |
| 2026-07-26 | Bylaw amendment — shareholder meeting quorum requirement eased from a majority to 33.3% |
| 2026-07-26 | Signed a 6-year capacity reservation agreement with Lumentum (total deposits of $87M) |
Institutional ownership figures conflict across sources, ranging from 47.51% to 68.38%, and primary-source reconciliation has not been confirmed, so they are treated as reference figures only (as of the 2026-08-15 snapshot).
Macro Environment (as of 2026-08-14)
| Factor | Current Value | Notes |
|---|---|---|
| Fed funds rate | 3.50-3.75% | Held steady at the 2026-07-29 FOMC meeting |
| US 10-year Treasury yield | 4.68-4.70% | As of 2026-08-14 close |
| SOX (Philadelphia Semiconductor Index) | 12,098.47 | 2026-08-11 close (exact 8/14 close not available) |
| Nasdaq Composite | 26,729.16 | 2026-08-14 close, -0.28% vs. previous day |
| China export license backlog | Over $100M | As of the 2026-07-29 earnings release |
| Gallium price (China domestic, SMM) | $234.62/kg | As of 2026-08-03, stable/range-bound |
| USD/CNY exchange rate | 6.7434 | 2026-08-14, strongest yuan since February 2023 |
Confirmed Points of Note
- China export licenses: GaAs has required case-by-case export licenses from China's Ministry of Commerce since 2023, and InP since February 2025; Q4 2025 revenue fell 8.4% year-over-year to $23M due to delays in license issuance.
- US tariffs: During 2025, wafer import tariffs rose to as high as 70%, and the share of revenue from North America fell from 8% in 2024 to approx. 2% in 2025.
- Exchange rate: A stronger yuan (6.7434, the highest level since February 2023) creates a channel for higher dollar-converted costs at the Beijing production base.
- Tongmei's shift to a Hong Kong listing may trigger redemption rights held by existing private equity investors (approx. $49M, 2026-06-26).
- Short-term borrowings increased to $84.23M (as of 2026-06-30, up from $62.8M at year-end 2025).
- The TTM P/E of 1,321x and P/S of 42.65x indicate a high absolute valuation level, and the 52-week price range of $2.05-$143.16 reflects high volatility.
Supply and Demand Trends (as of the 2026-08-15 snapshot, some figures conflict)
| Item | Figure | Notes |
|---|---|---|
| Short interest (% of float) | 16.43% (estimated) | 2026-08-15 snapshot; not reconciled against FINRA's official settlement date |
| 8/14 volume | 9.63M shares | Below the 20-day average of 11.83M shares |
| Insider trading (June 2026) | CEO sold 197,498 shares on the open market after exercising stock options | Two directors also sold 22,000 and 8,333 shares respectively; July-August data not available |
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Fact Highlights
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR