EL7.AI
StocksMedium•31 July 2026•
1 min read

AXT Shares Surge as AI Demand Drives Record Indium Phosphide Revenue

Key Facts

1AXT reported its highest-ever quarterly revenue for indium phosphide (InP) during the second quarter.
2The company's shares surged driven by increased demand from AI data centers and improved profitability.

Amid the rapid expansion of advanced computing infrastructure, AXT reported record-breaking second-quarter results that underscore the surging demand for AI components. The company achieved its highest-ever quarterly revenue for indium phosphide (InP) at $30.7 million, fueled by AI data center requirements. According to reports, total revenue jumped 164.80% year-over-year to $47.59 million, significantly outperforming market estimates.

This robust performance was driven by improved profitability and higher sales volumes, with adjusted gross margins expanding to 45.0% from 8.2% in the prior-year period. The company posted an adjusted operating profit of $11.2 million, reversing a previous loss. The results strengthen the company's position within the semiconductor sector.

The company's stock (ticker 0JVV.L) stood at $640.39 at the close of July 28, 2026, having reached a day high of $700. Investors are closely watching the continued demand from data centers as the InP backlog exceeds $100 million. On the macroeconomic front, traders are monitoring upcoming US CB Consumer Confidence data, which previously stood at 92.2, as a broader gauge of economic health.