$AXTI

AXTI just had one last massive rally because it produces one of the most critical materials in the AI hardware supply chain (the stock price pushed from around $1 levels up to nearly $40). And it did this without a correction.
AXT is a technology company that produces compound semiconductor wafer substrates for high-performance technologies where standard silicon falls short.
Behind this extraordinary move is fundamentally the AI revolution and a dramatic shift in the supply-demand balance: For AI systems to run, massive hardware and chips need to communicate with each other at incredible speeds. That speed can only be achieved with light (optical interconnects). The indium phosphide (InP) that AXT produces is a gold-standard component for these data center connections. As AI investment has exploded, demand for the company’s products has also reached a peak.
AXT holds about 40% of global indium phosphide supply. To meet the massive demand coming from data centers, they announced they will double production capacity by the end of 2026.
AXT isn’t actually a profitable company right now; it reports net losses. But the market is pricing very aggressively not the company’s profitability today, but the indispensable role it could play in the future AI infrastructure stack. Record order backlogs keep appetite consistently strong.
has reached the neckline resistance zone from 2000