Having reached its all-time high of $96.00 on May 1, 2026, AXT, Inc. (NASDAQ:AXTI) secured a spot on our list of the 7 tech stocks that just hit new all-time highs.
The company’s 611.68% year-to-date surge (as of May 8, 2026) came as it marked its transition from a cyclical substrate supplier into a key enabler of AI-driven optical infrastructure. That transition is well-supported by the convergence of earnings execution, margin expansion, and capacity acceleration. AXT, Inc. (NASDAQ:AXTI) announced its Q1 2026 results on April 30, 2026.
Indium Phosphide stood out as a key catalyst amid strong demand seen across AI data center applications, contributing $13.6 million in revenue. That momentum helped AXT, Inc. (NASDAQ:AXTI) report Q1 2026 revenue of $26.9 million, while having reported $23.0 million revenue in Q4 2025 and $19.4 million in Q1 2025. The quarter marked a decisive inflection in profitability, with non-GAAP gross margins expanding sharply to 29.9% from 21.5% in the previous quarter. Meanwhile, a year ago, the company’s gross margin was negative.
Management attributed that performance particularly to higher volumes and a richer InP product mix, with pricing actions framed as potential supporting drivers. Looking ahead, they cited demand visibility, driven by an InP backlog exceeding $100 million. Accelerating AI infrastructure needs are further improving the demand profile, with management expecting Q2 to be the largest InP quarter so far. Management also eyes profitability in the second quarter.
On the strategic front, AXT, Inc. (NASDAQ:AXTI) is directing its recent $632.5 million capital raise toward aggressive Indium Phosphide capacity buildouts and next-generation 6-inch wafer development. That, alongside improving execution, positions the company to scale in line with hyperscaler demand.
That earnings inflection point translated into improved overall sentiment, with Wedbush lifting its price target on AXT, Inc. (NASDAQ:AXTI) to $93 on May 1, 2026, after raising it from $28 to $80 two days earlier. The bullishness the firm holds on the stock comes amid accelerating profitability, record backlog visibility, and aggressive capacity scaling.
Those catalysts are shifting AXT, Inc. (NASDAQ:AXTI) from a turnaround narrative to a structural growth story, while driving its breakout to new all-time highs. Its stock surged 40% from $68.71 on April 28 to close at $96 on May 1.
AXT, Inc. (NASDAQ:AXTI) is a material science company that develops and manufactures semiconductor substrate wafers. The company’s wafers are made up of indium phosphide (InP), gallium arsenide (GaAs), and germanium (Ge).
While we acknowledge the risk and potential of AXTI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXTI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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