On September 8, AXT Inc rose 8.2% in regular trading, trading at $66.41/share, with turnover of $270 million. The rally was driven by reports of a severe supply shortage in indium phosphide (InP) substrates and epitaxial wafers, with Q4 prices expected to surge more than 10%, marking a record single-quarter increase.

According to industry data, the average price of 4-inch InP substrates has reached 6,500 yuan per wafer, up approximately 50% year-to-date, while upstream refined indium prices have climbed over 80% since January. The global InP substrate supply-demand gap now exceeds 70%, with supply tightness unlikely to ease fundamentally over the next two to three years. As a core global supplier of InP substrates, AXT is a direct beneficiary of this pricing cycle.

The move also builds on strong fundamental momentum. AXT's Q2 results significantly exceeded both company guidance and consensus estimates, with InP revenue hitting an all-time high. Non-GAAP EPS nearly tripled its prior guidance. Wedbush maintained its outperform rating, citing AI-driven data center demand as a structural tailwind still in early innings. The analyst consensus price target stands at $96.50, implying substantial upside from current levels.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)