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AXT Inc Shares Jump Another 13% as AI-Driven Chip Substrate Demand Keeps Fueling Historic Rally and More
['Scott Lance']
International Business Times Australia
The results were driven primarily by record indium phosphide revenue of $30.7 million during the quarter, reflecting surging demand tied to AI and data center optical connectivity applications.
Following the earnings release, AXT shares closed the regular session up 26.89% at $46.91, then climbed another 21.28% in after-hours trading to $56.93, before continuing to extend those gains in the sessions that followed.
Management said the company's order backlog for indium phosphide products had grown to more than $100 million, giving the company meaningful visibility into demand well beyond the current quarter.
The Lumentum deal specifically includes $87 million in upfront deposits, locking in future demand for AXT's indium phosphide wafers.
A Broader Strategic BackdropAXT's growth has also been shaped by broader shifts in its supply chain and corporate structure.