AXT Inc. stock traded up 13.65% on Monday, August 03, 2026, following its Q2 earnings beat. The company reported adjusted EPS of $0.19 versus the $0.07 consensus, and revenue of $47.6M versus the $34.1M estimate, up from $18.0M a year earlier, driven by AI and data center optical demand. Management guided Q3 EPS to $0.30–$0.32 and revenue to about $66M. Record Q2 indium phosphide revenue reached $30.7M, with a backlog above $100M and gross margins aiming for the 40% range. A long-term Lumentum deal through 2031, backed by $87M in deposits, provides multi-year visibility on wafer shipments. Needham upgraded AXTI to Buy with a $90 target, and Wedbush reiterated Outperform with a $93 target, as the stock spiked roughly 20–30% on the news. AXTI closed at $45.86 on 2026/07/17 and finished the latest session around $68.68 after touching $70.35 intraday. Trailing profit margins remain negative, and price-to-sales screens rich at over 40x, but the balance sheet shows a current ratio of 2.6 and modest debt.