AXT Inc. (NASDAQ:AXTI) Surges 8.29% on $100 Million Share Offering to Fuel Expansion and R&D

AXT Inc. (NASDAQ:AXTI) surged 8.2934% in pre-market trading on December 31, 2025, signaling strong investor confidence amid strategic corporate moves. The compound semiconductor wafer manufacturer recently priced a public offering of 8.16 million shares at $12.25 per share, securing approximately $100 million in gross proceeds. This capital infusion follows a 563% stock price gain over the past year, though valuation concerns persist given its current ratio of 1.76 and moderate debt levels.

Funds will prioritize expanding production capacity at Beijing Tongmei Xtal Technology, a subsidiary focused on indium phosphide substrates, to meet rising demand in 5G infrastructure and satellite technologies. The offering also supports R&D initiatives and general operations, with Northland Capital Markets acting as lead underwriter. This timing aligns with AXT's third-quarter 2025 earnings beat, where it reported a $0.03 net loss per share (versus expected $0.12) and $28 million in revenue, exceeding forecasts by 41.13%.

The stock's recent momentum reflects a combination of improved profitability, strategic expansion, and market positioning in high-growth semiconductor applications. Analysts note the company's ability to balance liquidity with growth ambitions, though valuation metrics suggest caution for long-term investors.

Technical indicators such as the MACD Golden Cross and KDJ Golden Cross have historically served as entry signals for semiconductor stocks like AXTI. Given AXTI's recent earnings beat and revenue outperformance, these signals may align with its strong pre-market move.

Analysts suggest that investors should monitor AXTI's liquidity and operational leverage as it scales production, with key metrics like EBITDA and gross margin offering insight into long-term sustainability and profitability.