
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc has demonstrated a significant turnaround in its operational metrics, as evidenced by its operating margin improvement from (34.0%) to (1.4%) in the second quarter, primarily driven by heightened volume and an increase in gross margin to 22.4% from 8.2%. The company's revenue from Gallium Arsenide (GaAs) and Indium Phosphide (InP) substrates showed substantial growth, with GaAs revenue reaching $7.5 million—up 21% quarter-over-quarter—and InP revenue soaring from $3.6 million to $13.1 million due to favorable export license conditions. Additionally, the firm’s gross margin is forecasted to maintain an upward trajectory, expected to stabilize in the high 20% range, which bodes well for further revenue growth and profitability.
Bears say
AXT Inc faces a challenging outlook due to macroeconomic pressures such as rising oil and gas prices, which may lead to decreased consumer spending and consequently impact the company's revenue. Additionally, the firm could experience significant gross margin stress if market conditions lead to rapid price declines, further compounded by geopolitical risks that might jeopardize vital permits. The ongoing laser shortage in the optical industry presents another headwind, limiting AXT's ability to meet demand and maintain competitive positioning, while also raising concerns about the company’s capacity to achieve projected revenue and gross margin targets in the coming years.
This aggregate rating is based on analysts' research of AXT and is not a guaranteed prediction by Public.com or investment advice.
AXT (AXTI) Analyst Forecast & Price Prediction
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