On June 15, AXT Inc rose 14.89% in pre-market trading, trading at $110.53/share, with turnover of $12.50 million.
On the news front, the rally is attributed to a confluence of three factors: a technical oversold rebound following sustained pullback, tightening indium phosphide (InP) export controls from China, and broad-based strength in the semiconductor equipment sector. AXT had surged over 16% on May 22 after reporting better-than-expected Q1 earnings and strong AI optical communication demand, but subsequently faced persistent profit-taking and heavy insider selling pressure, triggering a sharp correction from highs.
Critically, China has continued tightening export controls on InP and upstream high-purity indium, with rejection rates for US and Japanese export applications exceeding 80%. This has created severe global InP capacity shortages. AXT, as a leading US-listed InP substrate manufacturer with 100% production capacity located in China, stands as a primary beneficiary of supply chain scarcity premiums. Meanwhile, the semiconductor equipment sector rallied collectively, with Teradyne up 4.79%, Lam Research up 4.33%, and Applied Materials up 4.01%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)