14 Best Semiconductor Equipment Stocks to Invest In Now

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7. AXT, Inc. (NASDAQ:AXTI)

AXT, Inc. (NASDAQ:AXTI) is one of the best semiconductor equipment stocks to invest in now. AXT, Inc. (NASDAQ:AXTI) reported its fiscal Q4 2025 and full year 2025 results on 19th February, reporting revenue of $23.0 million for fiscal Q4, compared with $28.0 million for fiscal Q3 2025 and $25.1 million for fiscal Q4 2024. GAAP gross margin was 20.9% of revenue for fiscal Q4 2025, compared with 22.3% of revenue for fiscal Q3 2025 and 17.6% for fiscal Q4 2024. Revenue for the full year 2025 was $88.3 million, compared with $99.4 million in fiscal year 2024.

B. Riley lifted the price target on AXT, Inc. (NASDAQ:AXTI) to $21 from $18 on February 20, keeping a Neutral rating on the shares after the company reported fiscal Q4 sales and EPS in line with the pre-announcement. However, InP revenue fell to $8M from $13M due to limited Chinese export permits, and the firm believes that the stock is anticipated to remain range-bound until clarity on export permits emerges.

The same day, Wedbush raised the price target on AXT, Inc. (NASDAQ:AXTI) to $28 from $8.50 while maintaining an Outperform rating on the shares and telling investors that its target is set by applying a 30 times multiple to 2027 earnings. Although the multiple is considerably greater than what the firm would typically apply to a low margin materials company, Wedbush believes it to be supported by the substantially higher growth rates expected for InP over the next few years, along with the potential upside to its current model.

AXT, Inc. (NASDAQ:AXTI) is involved in the design, development, manufacture, and distribution of compound and single-element semiconductor substrates. The company also sells raw materials and specialty material substrates used to make substrates and other related products.

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