
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc. demonstrated strong financial performance in the fourth quarter, with a revenue increase of 23.0% year-over-year and 6.4% quarter-over-quarter, highlighting robust market demand for its semiconductor substrates. The company's significant growth in indium phosphide (InP) revenue, which surged 73% year-over-year to reach $9.1 million, underscores the rising demand for InP photodetectors and silicon photonics, particularly driven by artificial intelligence applications. With projections of gross margins rebounding to 23% in the second quarter and improving further into the high-20s by the fourth quarter, along with a favorable outlook for the consolidated GaAs and InP substrate market, AXT is well-positioned to capitalize on long-term growth trends in the semiconductor sector.
Bears say
The financial performance of AXT Inc has resulted in a negative outlook, primarily due to a significant decline in gross margins (GM), which fell from 24.3% in 3Q to 17.9%, impacted by reduced recycling benefits and lower ingot growth. Furthermore, the anticipated decline of approximately $5 million in InP revenue due to China's recent export restrictions adds additional pressure on the company's financials. Consequently, management's guidance for 1Q25 indicates revenues and non-GAAP EPS significantly below prior expectations, reinforcing a cautious sentiment surrounding the company's future earnings potential.
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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