Should You Buy, Sell or Hold AXTI Stock After Its Strong Q3 Results?

AXT Inc. reported record Q3 revenues of $73.4 million (up 162% YoY) and swung to profitability with 41-cent non-GAAP EPS. The company's indium phosphide (InP) substrate business is benefiting from AI data-center networking demand, with backlog exceeding $500 million. However, analysts recommend a Hold rating due to the stock's 191% YTD surge, rich 24.43X forward P/E valuation (2.8x industry average), China-based manufacturing exposure, and execution risks around capacity expansion.