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AXT's Geographic Reach Expands: Can It Drive More Revenue Growth?

Zacks Investment Research·
AXT's Geographic Reach Expands: Can It Drive More Revenue Growth?

AXT, Inc. is diversifying its revenue streams beyond China, with Europe revenues surging 302.3% and other Asian markets showing strong growth in the first half of 2026. However, the company faces intensifying competition from Coherent and Lumentum in the indium phosphide (InP) substrate market as both rivals expand their optical connectivity capabilities. Despite premium valuation, AXT holds a Zacks Rank #1 (Strong Buy) with 2026 earnings expected at 86 cents per share.

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