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AXT (AXTI) reported a 162% year-over-year jump in Q3 revenue, driven by booming InP demand, and carries a backlog exceeding $500 million. The stock has rallied 191%, and its valuation premium raises the stakes for investors weighing the strong results against the sharp run-up.
AXT Q3 Revenue Jumps 162% as InP Demand Surges; Stock’s 191% Rally Draws Scrutiny
AXT (AXTI) reported a 162% year-over-year increase in third-quarter revenue, according to a Zacks analysis published Thursday. The results were attributed to booming demand for indium phosphide (InP).
Backlog Tops $500 Million
The company carries a backlog exceeding $500 million, the report said, pointing to continued strength in InP demand.
Stock Rally and Valuation in Focus
AXTI shares have rallied 191%, and the stock carries a valuation premium. According to the report, that run-up raises the stakes for investors weighing the strong quarterly results against the sharp share-price gain.
The Buy, Sell or Hold Question
The Zacks piece frames the central question for investors as whether to buy, sell or hold AXTI stock following the strong Q3 results — balancing the revenue growth and backlog against the magnitude of the rally and the valuation premium.