AXT Shares Soar 5,100% on Indium Phosphide Demand

AXT Inc. climbed about 5,100% over the past 12 months as demand for Indium Phosphide substrates for AI data centers increased and the company reported a backlog above $100 million. Over the same period, Bitcoin and Ethereum fell about 35–40%.

AXT, a California-based semiconductor manufacturer, produces compound substrates including Indium Phosphide, Gallium Arsenide and Germanium. Its products are used in lasers and optical transceivers that operate at 800G and 1.6T speeds for high-bandwidth interconnects inside data centers.

AXT shares traded near $1.74 in June 2025 and rallied to close near $89 by early June 2026. The stock reached an intraday high above $140 on May 22, 2026 before pulling back about 35% from that peak. Company filings and investor statements attributed the rally to increased orders from major cloud providers building AI-optimized data centers, which created the record backlog above $100 million.

In its first-quarter 2026 report, released April 30, AXT posted revenue of $26.9 million, up 39% from $19.4 million a year earlier. Gross margin improved to 29.6% from negative 6.4% in Q1 2025. The company reported a GAAP net loss of $1.6 million, or $0.03 per share.

AXT holds an estimated roughly 40% share of the global Indium Phosphide supply. Analysts and industry data indicate few short-term substitutes for Indium Phosphide in the high-speed photonics applications used inside AI data centers, supporting order volumes and pricing.

Bitcoin traded near $110,000 about a year ago and was around $60,700 in early June 2026, a decline of roughly 40%. Bitcoin experienced a sharp liquidation event in one week, falling more than 17% and slipping below $60,000. Spot Bitcoin exchange-traded funds recorded net outflows exceeding $1.7 billion in the most recent week of data, and a stronger-than-expected U.S. jobs report reduced market bets on near-term interest-rate cuts. Ethereum fell from about $2,685 a year ago to roughly $1,560, a decline near 35%, and dropped more than 22% in seven days at one point.

Investor Justin Spittler flagged a close below the 10-week moving average as a “red flag,” noting a technical breakdown could indicate trouble. Trader Nick Drendel cautioned many holders may be “trapped at higher prices” and that selling pressure could continue for weeks if sentiment turned negative.

Risks noted by market participants include continued share-price volatility, a valuation that is large relative to recent revenue, and dependence on continued orders from large cloud providers. AXT also operates production in China, which introduces potential supply-chain and geopolitical exposure that could affect output or customer relationships.

AXT reported the backlog, improved margins and narrowed loss in its Q1 report. Bitcoin and Ethereum each posted year-on-year declines of roughly 40% and 35%, respectively, over the same 12-month window.