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AXT Inc. (NASDAQ:AXTI) is one of the 10 Stocks With Easy 9-30% Upside.

AXT extended its winning streak to a third straight day on Thursday, climbing 18.69 percent to finish at $63.12 apiece, as investor confidence was boosted by the easing Middle East tensions and the renewed optimism for the broader semiconductor industry.

According to the company, it was upbeat about its outlook for the first quarter of the year amid the progress on its export permits early in the period, which is expected to support the strong demand for indium phosphide as data center operators continue with their AI infrastructure build-out.

A semiconductor. Photo by Tima Miroshnichenko on Pexels

Indium phosphide is a high-performance semiconductor primarily used for high-speed electronics, optoelectronics, and photonics, and is crucial for various industries, including fiber optic communications, mobile networks, automotive lidars, and laser technologies, among others.

AXT Inc. (NASDAQ:AXTI) is set to release the results of its earnings performance for the first quarter on April 30, 2026. A conference call will be held to elaborate on the results.

“We are in a strong position to achieve sequential revenue growth in Q1, driven primarily by growth in indium phosphide for the AI infrastructure build-out,” AXT Inc. (NASDAQ:AXTI) CEO Morris Young said.

“We are also on track to double our indium phosphide manufacturing capacity this year and have a strong balance sheet to support our continued business expansion,” he noted.

Last year, AXT Inc. (NASDAQ:AXTI) widened its attributable net loss by 83 percent to $21.26 million from $11.6 million in 2024. Revenues also declined by 11 percent to $88 million from $99 million year-on-year.

In the fourth quarter alone, attributable net loss narrowed by 31 percent to $3.5 million from $5.09 million, while revenues dropped by 8 percent to $23 million from $25 million.

While we acknowledge the potential of AXTI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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