
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc has demonstrated significant financial improvement as reflected in its operating margin, which increased from -34.0% to -1.4% in the second quarter, primarily due to heightened volume and an enhanced gross margin that rose to 22.4% from 8.2%. The company reported a notable 21% quarter-over-quarter revenue growth in GaAs to $7.5 million, attributed to rising demand for wireless RF devices, alongside a dramatic increase in InP revenue from $3.6 million to $13.1 million due to an improved export license situation. AXT appears to be poised for continued growth, supported by the increasing demand for III-V materials as the industry shifts towards optics for enhanced networking bandwidth.
Bears say
AXT Inc. experienced a significant decline in total revenues in Q2, with a drop of 7.4% quarter-over-quarter (Q/Q) and 35.6% year-over-year (Y/Y), highlighting severe profitability challenges for the company. Additionally, raw material sales decreased by 20% Q/Q and 19% Y/Y, while inventory levels remained relatively stable, indicating potential difficulties in demand or market competitiveness. Macroeconomic concerns, along with export licensing issues that hinder operational capabilities, further compound the negative outlook for AXT’s financial health and growth prospects.
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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