
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc. demonstrated strong financial performance in the fourth quarter, with revenue increasing by 23.0% year-over-year and 6.4% quarter-over-quarter, along with a notable 73% year-over-year growth in InP revenue to $9.1 million. The company's management anticipates continued demand growth in AI-related InP applications, projecting a growth rate in this segment of approximately 20% by 2025, alongside improvements in passive optical networks, industrial lasers, and LED markets as the global demand environment recovers. With AXT already capturing around 10% of the approximately $100 million GaAs and InP substrate market, which is expected to grow by 30% this year, the company is well-positioned to benefit from favorable long-term market trends.
Bears say
The financial outlook for AXT Inc. exhibits significant concerns, driven primarily by a marked decrease in gross margin (GM), which fell from 24.3% in 3Q to 17.9% due to diminished recycling benefits and reduced ingot growth. Additionally, anticipated revenue from indium phosphide (InP) substrates is projected to decline by approximately $5 million in 1Q due to export restrictions imposed by China, a key revenue source for the company. Furthermore, management's guidance for 1Q25 indicates revenues and earnings per share (EPS) significantly lower than both the previous quarter and consensus estimates, fueling a pessimistic outlook for both the current and upcoming fiscal 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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