Lumentum and Coherent Top the S&P 500: Reasons for Growth Potential Among New Index Members.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy AXTI?
Source: Barron's
- Top Performers: Lumentum Holdings and Coherent were among the best-performing stocks in the S&P 500 on Tuesday.
- Quarterly Rebalancing: Their strong performance followed their recent addition to the S&P 500 index during its quarterly rebalancing.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AXTI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AXTI
Wall Street analysts forecast AXTI stock price to fall
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 78.760
Low
18.00
Averages
21.33
High
26.00
Current: 78.760
Low
18.00
Averages
21.33
High
26.00
About AXTI
AXT, Inc. is a material science company that develops and manufactures high-performance compound and single element semiconductor wafer substrates comprising indium phosphide (InP), gallium arsenide (GaAs) and germanium (Ge). Its wafer substrates are used when a typical silicon wafer substrate cannot meet the performance requirements of a semiconductor or optoelectronic device. It has two product lines: specialty material substrates and raw materials integral to these substrates. Its InP is a semiconductor wafer substrate used in broadband and fiber optic applications, 5G infrastructure and data center connectivity. Its semi-conducting GaAs substrates are used to create opto-electronic products, including high brightness light emitting diodes that are often used to backlight wireless handsets and LCD televisions and for automotive, signage, and lighting applications. Its Ge substrates are used in applications, such as solar cells for space and terrestrial photovoltaic applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NASDAQ 100 Pre-Market Activity Overview
- Market Performance: The NASDAQ 100 Pre-Market Indicator rose by 99.53 points to 26,689.87, indicating positive market sentiment that may attract more investor interest.
- Active Stocks: Local Bounti Corporation (LOCL) increased by $1.0305 in pre-market trading, with a volume of 35,128,203 shares, indicating a significant uptick in the company's market activity.
- ETF Performance: Direxion Daily TSLA Bull 2X ETF (TSLL) rose by $0.2 to $13.49, representing a 107.86% increase from its 52-week low, showcasing strong investor confidence in Tesla.
- Earnings Forecast: Intel Corporation (INTC) is scheduled to report earnings on April 23, 2026, with a consensus EPS forecast of -$0.11, reflecting a 2% increase over the previous year, indicating cautious optimism about its future performance.
See More
AXT Shares Drop 12% Following $550M Discounted Public Offering
- Public Offering Pricing: AXT priced its public offering at $64.25 per share for 8,560,311 shares, raising approximately $550 million, representing an 18% discount from Monday's closing price of $78.76.
- Additional Share Option: The company granted underwriters a 30-day option to purchase an additional 1,284,046 shares, which, if fully exercised, would increase total gross proceeds to about $632.5 million, enhancing its financial capacity.
- Planned Use of Proceeds: The funds will primarily support subsidiary Beijing Tongmei Xtal Technology in expanding indium phosphide substrate production for export markets, as well as for R&D, working capital, and other corporate purposes, indicating a strategic focus on future growth.
- Underwriter Lineup: Northland is acting as the sole bookrunner for the deal, with Needham, B. Riley, Craig-Hallum Capital, and Wedbush Securities serving as co-managers, ensuring a professional and efficient fundraising process.
See More
Amazon Boosts AI Investment, Stock Rises
- Amazon AI Investment Surge: Amazon's shares rose by 3% after announcing a deeper partnership with Anthropic, committing an additional $5 billion investment with plans to scale up to $20 billion over time, solidifying AWS as Anthropic's primary cloud provider and enhancing its competitive edge in the generative AI sector.
- Lucid Stock Gains: Lucid Group's shares increased by 2% following Uber's disclosure of an 11.5% passive stake, which strengthens their strategic ties, as Uber plans to purchase at least 35,000 Lucid vehicles, reinforcing their long-term partnership in autonomous mobility.
- AXT Stock Decline: AXT's shares fell by 8% after announcing a public stock offering, with proceeds aimed at expanding indium phosphide substrate production, raising dilution concerns despite the growth investment narrative, which negatively impacted investor sentiment.
- Alaska Air Outlook Uncertain: Alaska Air Group's shares dropped by 3% despite strong Q1 results, as the company suspended its FY2026 outlook due to fuel price volatility and geopolitical uncertainties, projecting an increase of approximately $600 million in expenses, which poses a significant headwind for EPS.
See More
AXT Announces Public Offering of Common Stock
- Public Offering Announcement: AXT has announced plans to offer shares of common stock in a public offering, with underwriters granted a 30-day option to purchase up to 15% additional shares, primarily aimed at supporting its subsidiary Beijing Tongmei Xtal Technology in expanding indium phosphide substrate production.
- Diverse Use of Proceeds: The funds raised will primarily be allocated for R&D of new or improved products, while also being utilized for working capital and general corporate purposes, thereby enhancing the company's overall financial flexibility and market competitiveness.
- Negative Market Reaction: AXT shares fell 7% in after-hours trading, reflecting investor concerns regarding the public offering, which could impact the company's short-term market performance and investor confidence.
- Strategic Implications: Through this financing, AXT aims to strengthen its position in the semiconductor materials market, particularly in the rapidly growing indium phosphide sector, to meet increasing market demand and drive long-term growth.
See More
AXT Inc. Shares Surge 21.46% Ahead of Earnings
- Stock Performance: AXT Inc. shares surged 21.46% week-on-week as investors bought in ahead of earnings, reflecting market optimism that could enhance the company's position in the semiconductor sector.
- Earnings Announcement: AXT Inc. is set to release its financial and operational highlights on April 30, 2026, complemented by a conference call to elaborate on results, which is expected to attract investor attention and potentially influence stock price volatility.
- Revenue Growth Outlook: The management anticipates sequential revenue growth in Q1, driven by progress on export permits for indium phosphide, indicating the company's competitive edge in the rapidly expanding artificial intelligence sector.
- Financial Condition: Although AXT Inc. widened its net loss to $21.26 million last year, the fourth quarter saw a narrowed loss of $3.5 million, demonstrating the company's efforts to improve financial performance, which may instill confidence in future investors.
See More
AXT Inc. Stock Rises 18.69% Amid Optimism
- Stock Surge: AXT Inc. shares rose 18.69% on Thursday, closing at $63.12, driven by easing Middle East tensions and renewed optimism in the semiconductor sector, reflecting a recovery in investor confidence.
- Positive Outlook: The company is optimistic about its first-quarter performance, expecting progress on export permits to support strong demand for indium phosphide, particularly as data center operators continue their AI infrastructure build-out.
- Capacity Expansion Plans: AXT Inc. plans to double its indium phosphide manufacturing capacity this year, with CEO Morris Young stating that the company has a strong balance sheet to support ongoing business expansion, highlighting its competitive position in the market.
- Financial Review: Despite a widening net loss of $21.26 million last year and an 11% revenue decline to $88 million, the fourth quarter showed a 31% reduction in net loss, indicating signs of financial improvement.
See More
NASDAQ 100 Pre-Market Activity Overview
- Market Performance: The NASDAQ 100 Pre-Market Indicator rose by 99.53 points to 26,689.87, indicating positive market sentiment that may attract more investor interest.
- Active Stocks: Local Bounti Corporation (LOCL) increased by $1.0305 in pre-market trading, with a volume of 35,128,203 shares, indicating a significant uptick in the company's market activity.
- ETF Performance: Direxion Daily TSLA Bull 2X ETF (TSLL) rose by $0.2 to $13.49, representing a 107.86% increase from its 52-week low, showcasing strong investor confidence in Tesla.
- Earnings Forecast: Intel Corporation (INTC) is scheduled to report earnings on April 23, 2026, with a consensus EPS forecast of -$0.11, reflecting a 2% increase over the previous year, indicating cautious optimism about its future performance.
See More
AXT Shares Drop 12% Following $550M Discounted Public Offering
- Public Offering Pricing: AXT priced its public offering at $64.25 per share for 8,560,311 shares, raising approximately $550 million, representing an 18% discount from Monday's closing price of $78.76.
- Additional Share Option: The company granted underwriters a 30-day option to purchase an additional 1,284,046 shares, which, if fully exercised, would increase total gross proceeds to about $632.5 million, enhancing its financial capacity.
- Planned Use of Proceeds: The funds will primarily support subsidiary Beijing Tongmei Xtal Technology in expanding indium phosphide substrate production for export markets, as well as for R&D, working capital, and other corporate purposes, indicating a strategic focus on future growth.
- Underwriter Lineup: Northland is acting as the sole bookrunner for the deal, with Needham, B. Riley, Craig-Hallum Capital, and Wedbush Securities serving as co-managers, ensuring a professional and efficient fundraising process.
See More
Amazon Boosts AI Investment, Stock Rises
- Amazon AI Investment Surge: Amazon's shares rose by 3% after announcing a deeper partnership with Anthropic, committing an additional $5 billion investment with plans to scale up to $20 billion over time, solidifying AWS as Anthropic's primary cloud provider and enhancing its competitive edge in the generative AI sector.
- Lucid Stock Gains: Lucid Group's shares increased by 2% following Uber's disclosure of an 11.5% passive stake, which strengthens their strategic ties, as Uber plans to purchase at least 35,000 Lucid vehicles, reinforcing their long-term partnership in autonomous mobility.
- AXT Stock Decline: AXT's shares fell by 8% after announcing a public stock offering, with proceeds aimed at expanding indium phosphide substrate production, raising dilution concerns despite the growth investment narrative, which negatively impacted investor sentiment.
- Alaska Air Outlook Uncertain: Alaska Air Group's shares dropped by 3% despite strong Q1 results, as the company suspended its FY2026 outlook due to fuel price volatility and geopolitical uncertainties, projecting an increase of approximately $600 million in expenses, which poses a significant headwind for EPS.
See More
AXT Announces Public Offering of Common Stock
- Public Offering Announcement: AXT has announced plans to offer shares of common stock in a public offering, with underwriters granted a 30-day option to purchase up to 15% additional shares, primarily aimed at supporting its subsidiary Beijing Tongmei Xtal Technology in expanding indium phosphide substrate production.
- Diverse Use of Proceeds: The funds raised will primarily be allocated for R&D of new or improved products, while also being utilized for working capital and general corporate purposes, thereby enhancing the company's overall financial flexibility and market competitiveness.
- Negative Market Reaction: AXT shares fell 7% in after-hours trading, reflecting investor concerns regarding the public offering, which could impact the company's short-term market performance and investor confidence.
- Strategic Implications: Through this financing, AXT aims to strengthen its position in the semiconductor materials market, particularly in the rapidly growing indium phosphide sector, to meet increasing market demand and drive long-term growth.
See More
AXT Inc. Shares Surge 21.46% Ahead of Earnings
- Stock Performance: AXT Inc. shares surged 21.46% week-on-week as investors bought in ahead of earnings, reflecting market optimism that could enhance the company's position in the semiconductor sector.
- Earnings Announcement: AXT Inc. is set to release its financial and operational highlights on April 30, 2026, complemented by a conference call to elaborate on results, which is expected to attract investor attention and potentially influence stock price volatility.
- Revenue Growth Outlook: The management anticipates sequential revenue growth in Q1, driven by progress on export permits for indium phosphide, indicating the company's competitive edge in the rapidly expanding artificial intelligence sector.
- Financial Condition: Although AXT Inc. widened its net loss to $21.26 million last year, the fourth quarter saw a narrowed loss of $3.5 million, demonstrating the company's efforts to improve financial performance, which may instill confidence in future investors.
See More
AXT Inc. Stock Rises 18.69% Amid Optimism
- Stock Surge: AXT Inc. shares rose 18.69% on Thursday, closing at $63.12, driven by easing Middle East tensions and renewed optimism in the semiconductor sector, reflecting a recovery in investor confidence.
- Positive Outlook: The company is optimistic about its first-quarter performance, expecting progress on export permits to support strong demand for indium phosphide, particularly as data center operators continue their AI infrastructure build-out.
- Capacity Expansion Plans: AXT Inc. plans to double its indium phosphide manufacturing capacity this year, with CEO Morris Young stating that the company has a strong balance sheet to support ongoing business expansion, highlighting its competitive position in the market.
- Financial Review: Despite a widening net loss of $21.26 million last year and an 11% revenue decline to $88 million, the fourth quarter showed a 31% reduction in net loss, indicating signs of financial improvement.
See More
