On July 6, AXT Inc rose 8.52% in pre-market trading, trading at $61.35/share, with turnover of $17.097 million.

On the news front, AXT's subsidiary Beijing Tongmei signed a three-year master development and supply agreement with Coherent, a key CPO supply partner of NVIDIA, for 6-inch indium phosphide wafer substrates. The agreement, which took effect on June 25, includes a prepayment of approximately $22.29 million from Coherent, as disclosed in an SEC filing on July 3.

The deal comes amid a severe global indium phosphide substrate supply-demand gap exceeding 70%, with lead times extending beyond 24 weeks. By locking in long-term upstream material supply through this agreement, AXT has significantly enhanced market confidence in its earnings visibility. The stock had previously faced pressure from semiconductor equipment sector weakness and executive share sales, and this strategic partnership is driving a recovery rally.

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