AXT Reports Strong Results as Wedbush Compares Management to ‘Jaws’ Hero

AXT, Inc. reported stronger-than-expected third-quarter results and forecast about $90 million in fourth-quarter revenue, with nearly all sequential growth expected to come from indium phosphide sales.

The company makes compound semiconductor wafer substrates and manufactures indium phosphide. AXT's backlog exceeds $500 million, and every customer is on allocation.

The fourth-quarter outlook follows an earlier AXT outlook of roughly $66 million for third-quarter revenue, covering shipments permitted for export. TokenPost previously covered Wedbush's pre-earnings view of AXT's permits, product mix and pricing.

AXT plans to double indium phosphide capacity in 2027 after nearly tripling it in 2026. Management said gross margins could reach at least 60% as production shifts toward larger wafers and newer crucibles.

Wedbush Securities analyst Matt Bryson compared AXT's management to Chief Martin Brody from “Jaws” after the results. Wedbush sees demand for indium phosphide exceeding supply as the AI optical buildout expands.