AXT Inc. (NASDAQ:AXTI) Shares Soar 17.7% Pre-Market Ahead of Conference, Q3 Revenue Up 18.2%

AXT Inc. (NASDAQ:AXTI) surged to a 24-year high in pre-market trading on Dec. 10, 2025, with shares climbing 17.7026% ahead of a scheduled business update. The rally reflects renewed investor optimism as the semiconductor materials firm prepares to present at the Northland Securities Growth Conference on Dec. 16, where strategic guidance and growth projections are expected to be shared.

Recent financial results underscore the stock's momentum. In Q3, AXT narrowed its net loss by 35% to $1.9 million year-on-year while revenue rose 18.2% to $27.9 million.

A 250% quarter-on-quarter spike in indium phosphide (InP) sales—driven by surging data center demand—highlighted the company's ability to capitalize on evolving market trends. The compound semiconductor substrate maker has positioned itself as a key supplier for high-performance wafer materials.

CEO Morris Young emphasized the firm's growth trajectory, stating that ongoing data center infrastructure upgrades present "tremendous opportunities" for 2026. With a focus on indium phosphide, gallium arsenide, and germanium substrates, AXT aims to leverage its technological expertise to drive profitability. The upcoming conference is seen as a pivotal moment to validate market expectations ahead of broader industry adoption of next-generation semiconductor solutions.

Analysts have noted the company’s strategic positioning in the semiconductor materials market, particularly its dominance in indium phosphide and gallium arsenide. The 250% increase in InP sales in Q3 demonstrates a clear acceleration in demand for high-performance substrates. As the market anticipates the firm’s strategic guidance and growth outlook, investors are weighing the potential of AXT to outperform in the next phase of semiconductor innovation.