AXT Inc Reports Record Revenue in Q2 2026 Driven by AI Infrastructure Growth
AXT, Inc. reported record quarterly revenue for the second quarter of 2026, driven primarily by increased demand from an accelerating global build-out of artificial intelligence infrastructure. The company's indium phosphide (InP) business saw strong performance due to a shift toward higher-speed transceiver modules in data centers and favorable pricing trends as customers move to larger diameter substrates. Management plans significant capacity expansion, aiming to more than double InP production by the end of 2026 and again in 2027. Strategic partnerships with companies like Coherent and Lumentum are supporting this growth trajectory. The company also noted a growing backlog exceeding $100 million and expects gross margins above 45% as higher-value products scale. Operational risks include the timing of export permits, which remain unpredictable but have become more regular recently. AXT is transitioning its subsidiary Tongmei's IPO from China’s STAR Market to Hong Kong Exchange, a move expected to take about one year.
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Topics: AI infrastructure capacity expansion InP substrates supply chain strategy