AXT Revenue Surges 164% as Firm Becomes Critical AI Infrastructure Supplier

Key Facts

1AXT's second-quarter revenue surged 164% year-over-year to $47.6 million.

2Gross margins reached 44.9% as demand for Indium Phosphide (InP) substrates grows.

3Major customers including Coherent and Lumentum are making upfront capital commitments to secure supply.

AXT's second-quarter revenue surged 164% year-over-year to $47.6 million. Seeking Alpha reported that the company's gross margins reached 44.9% as demand grows for Indium Phosphide (InP) substrates used in optical networking components. The firm is emerging as a critical bottleneck in the AI infrastructure supply chain due to high barriers to entry in InP capacity.

Major customers including Coherent and Lumentum are making upfront capital commitments to secure future supply. In equity markets, COHR closed at $232.9 on October 16, 2026, while LITE closed at $824.13 on the same date. These strategic moves by customers underscore AXT's growing importance within the advanced optical communications supply chain.