On September 25, AXT Inc rose 5.18% in regular trading, trading at $77.15/share, with turnover of $339 million. The stock rebounded after a two-session pullback that had seen a cumulative decline of over 12%, with the recovery driven by strengthening fundamentals in its core indium phosphide (InP) substrate business.

On the news front, the latest industry research indicates that AXT plans to raise InP substrate prices by another 10% in Q4, marking the largest single price increase on record and extending the streak to four consecutive hikes. NVIDIA has projected that global InP demand will surge approximately 20-fold by 2030, while capacity expansion cycles span 18 to 36 months, suggesting the supply-demand imbalance is unlikely to ease in the near term.

The broader optical communication and compound semiconductor ecosystem continues to benefit from AI infrastructure buildout. Industry data shows 800G-and-above high-end optical modules becoming the primary growth driver, with the market projected to expand from $45.2 billion to $129.5 billion between now and 2028. AXT, as a leading supplier of InP and gallium arsenide substrates used in data center connectivity and photonic integrated circuits, stands at the center of this structural demand shift.

(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.)