$AXTI

It was making an unhealthy rally and then news hit. In rallies like this, they always find an excuse, and they did.
AXT revises down Q4 revenue estimate, shares down ~20%
AXT (AXTI) was trading lower after the compound semiconductor wafer substrates manufacturer revised down its revenue expectations for the fourth quarter of 2025.

Shares were -22.59% Thursday post market to $19.88.

The Fremont-based company now expects its Q4 revenue to be in the range of $22.5M-$23.5M, vs. the prior estimate of $27M-$30M. The consensus stands at $28.77M.

The decrease is primarily attributed to fewer export control permits for indium phosphide issued by China's Ministry of Commerce than previously expected.

"While we are disappointed that we were not able to ship indium phosphide substrates to fulfil more customer orders in December, we continue to work diligently with the Ministry of Commerce on the export permit process and are hopeful that we will receive additional permits in the first quarter 2026," said CEO Morris Young.

"As such, we are on target to more than double our indium phosphide capacity in the second half of the year," noted the CEO.

"In addition, we are making plans for continued growth and capacity expansion. We were very pleased to complete a capital raise in December and intend to use some of the proceeds to increase manufacturing capacity in anticipation of a multi-year trend in data center expansion," said Young.

AXT is set to announce its financial results for the fourth quarter of 2025 following the close of market on February 19, 2026.