AXT Soars 5,100% on Indium Phosphide Orders as Crypto Falls

AXT Inc. shares rose about 5,100% over the past 12 months as orders for indium phosphide substrates from AI data center customers increased. The stock traded near $1.74 in June 2025, reached about $89 in early June 2026 and briefly hit an intraday high above $140 on May 22 before correcting roughly 35%.

AXT, based in California, manufactures compound semiconductor substrates including indium phosphide, gallium arsenide and germanium. Indium phosphide is used in lasers and optical transceivers that support 800G and 1.6T optical links inside AI data centers. The company reports it supplies about 40% of the global indium phosphide market.

In its first-quarter 2026 report, 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 narrowed its GAAP net loss to $1.6 million, or $0.03 per share, and reported a backlog exceeding $100 million.

Market participants noted ongoing volatility and flagged risks tied to the stock. Justin Spittler wrote on social media that AXT “has been a serious leader this cycle” and pointed to a close below its 10-week moving average as a potential red flag. Nick Drendel wrote that many investors may be “trapped at higher prices,” which could sustain selling pressure if the shares remain weak. Analysts and traders also cited elevated valuation, dependence on AI-related demand and production exposure in China as risk factors.

By contrast, Bitcoin and Ethereum declined over the same 12 months. Bitcoin traded near $110,000 a year ago and was around $60,700, down about 40%. The token experienced a liquidation event that removed more than 17% of value in a single week, and spot Bitcoin ETFs recorded outflows exceeding $1.7 billion in one week. A stronger-than-expected U.S. jobs report reduced expectations for near-term interest-rate cuts.

Ethereum fell from about $2,685 to roughly $1,560, a drop near 35%. The token lost more than 22% in a seven-day span and broke technical support levels during that sell-off.

Over the 12-month period, AXT returned about 5,100% while Bitcoin and Ethereum fell roughly 40% and 35%, respectively.