
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc. has demonstrated a significant turnaround in operational metrics, with its operating margin improving from -34.0% to -1.4% in the second quarter, largely attributed to increased volume and a robust gross margin of 22.4%, up from 8.2%. The company has also experienced notable revenue growth, particularly in GaAs and InP segments, with GaAs revenue rising 21% quarter-over-quarter to $7.5 million, driven by heightened demand for wireless RF devices, while InP revenue surged from $3.6 million to $13.1 million due to favorable export license conditions. Furthermore, AXT anticipates maintaining gross margins in the high 20% range, which bodes well for its projected revenue increases and overall financial health moving forward.
Bears say
AXT Inc faces a challenging outlook due to macroeconomic factors, including rising oil and gas prices, which could lead to decreased consumer spending and pressure on gross margins if market prices fall rapidly. Additionally, the company is at risk of not achieving projected quarterly revenue run rates and gross margins, particularly if geopolitical tensions impact its operations and the renewal of necessary permits. Compounding these issues, a persistent laser shortage is disrupting the optical industry, affecting AXT's ability to capitalize on opportunities within the AI infrastructure ecosystem, while factory closures related to pandemic responses could further hamper production.
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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