AXT Stock Falls 22% in Three Months: 3 Reasons the Dip Looks Attractive

AXT Inc. shares have declined 22% over three months but remain up 322.4% year-to-date. Despite the pullback, strong demand for indium phosphide (InP) substrates for AI data-center optical applications, aggressive capacity expansion plans, and long-term customer supply agreements support a bullish outlook. The stock is rated Zacks Rank #1 (Strong Buy), though it trades at a premium valuation of 34.85X P/S ratio.