AXT Reports Record Q2 Revenue and Returns to Profitability
AXT Inc (NASDAQ: AXTI) reported record second-quarter revenue of $47.6 million, a 164% increase year-over-year driven by strong demand for indium phosphide substrates used in AI data-center optical connectivity. The company returned to profitability with non-GAAP net income of $11.9 million or $0.19 per share. AXT's management highlighted that the current backlog for indium phosphide exceeds $100 million, supported by long-term supply agreements with Casela, Coherent, and Lumentum. The company plans to expand its quarterly capacity of these substrates to approximately $60 million by year-end 2026 and up to $130 million in 2027. Looking ahead, AXT forecasts third-quarter non-GAAP earnings between $0.30–$0.32 per share with revenue expected around $66 million that does not require export permits. The company also announced a shift of Tongmei's planned listing from China’s STAR Market to Hong Kong.
Topics: ai_data_centers capacity_expansion indium_phosphide semiconductors