On September 25, AXT Inc rose 5.06% in regular trading, trading at $79.93/share, with turnover of approximately $290 million, extending its recent strong rebound momentum.

On the news front, the latest industry research indicates that AXT plans to raise indium phosphide (InP) substrate prices by another 10% in Q4, marking the largest single price increase on record and the fourth consecutive hike. Multiple manufacturers confirmed at a recent optoelectronics expo that InP substrates remain in severe undersupply, with the industry-wide shortage reaching the scale of millions of wafers and order backlogs extending to 2028. NVIDIA has projected that InP demand could surge approximately 20-fold by 2030, while capacity expansion cycles of 18 to 36 months make near-term resolution of the supply-demand imbalance unlikely.

The broader photonics and optical communications sector continues to benefit from AI-driven compute architecture upgrades. High-speed optical module demand for 1.6T and 3.2T applications is accelerating, with the market for 800G and above modules projected to grow from $45.2 billion to $129.5 billion between 2026 and 2028, reinforcing the structural tailwind for InP substrate suppliers like AXT Inc.

(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.)