AXT (AXT) Surges 10.36% as Strategic Supplier Pact and AI-Driven Semiconductor Demand Fuel Rally

AXT surged 10.36% in pre-market trading on Nov. 11, 2025, marking one of the most significant early gains in its recent history. The sharp upward movement signaled strong investor confidence ahead of regular market hours, with the stock’s trajectory suggesting a potential reversal of prior downtrends.

The rally followed a series of strategic developments, including a previously disclosed partnership with a key supplier to streamline production costs. Analysts noted that the move addresses persistent concerns over operational efficiency, which had weighed on the stock for months. Additionally, renewed demand in the semiconductor sector, driven by AI infrastructure investments, has positioned AXT to benefit from broader industry tailwinds.

Technical indicators further support the positive momentum. The stock has broken through critical resistance levels observed in early 2025, with the 50-day and 200-day moving averages aligning in a bullish configuration. However, traders remain cautious about short-term volatility, as the rapid ascent could trigger profit-taking near key psychological thresholds.

The surge underscores AXT’s potential to outperform peers in the near term, provided it maintains its momentum and delivers on quarterly guidance. With a robust order backlog and improving gross margins, the company appears well-positioned to capitalize on the current upswing.