Why Did AXT Plunge 10.24%? Disappointing Revenue Forecast

On July 10, 2025, AXT's stock price plummeted by 10.24% during pre-market trading, marking a significant decline in investor confidence.

AXT, Inc. recently announced its preliminary revenue expectations for the second quarter of 2025, projecting revenues to fall between $17.5 million and $18 million. This forecast is notably lower than the company's previous guidance of $20 million, indicating potential challenges in meeting financial targets.

The revised revenue range has raised concerns among investors about the company's financial health and future performance. The significant drop in stock price reflects the market's reaction to this disappointing outlook, as investors reassess their positions in light of the new information.

AXT's announcement comes at a time when the semiconductor industry is facing various headwinds, including supply chain disruptions and fluctuating demand. The company's ability to navigate these challenges will be crucial in determining its long-term prospects and investor sentiment.