
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc has demonstrated a significant recovery in operational metrics, with operating margin improving from (34.0%) to (1.4%) in the second quarter, primarily driven by higher volume and gross margin increases. The gross margin surged to 22.4%, up from 8.2% in the same period, highlighting the positive impact of a better product mix, particularly with indium phosphide (InP) substrates. Notably, InP revenue more than tripled, rising from $3.6 million to $13.1 million, as the company benefits from improved export license conditions, indicating a strong demand in specialized semiconductor materials and positioning AXT for continued growth.
Bears say
AXT Inc. has reported a significant decline in total revenues, which fell to $18.0 million in Q2, representing a decrease of 7.4% quarter-over-quarter and 35.6% year-over-year, reflecting a troubling trend in overall business performance. The company's raw material sales, constituting a substantial 38% of total revenues, dropped by 20% quarter-over-quarter and 19% year-over-year, illustrating challenges in maintaining revenue from core offerings. Additionally, ongoing issues with export licenses, particularly concerning GaAs and InP, combined with macroeconomic pressures such as rising oil and gas prices and potential drops in consumer spending, present substantial risks to AXT's profitability and revenue 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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