
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc has demonstrated a significant improvement in its operational metrics, highlighted by an increase in operating margin from -34.0% to -1.4% in the second quarter, driven by higher volume and an improved gross margin of 22.4%, up from 8.2%. The company reported a notable 21% quarter-over-quarter growth in GaAs revenue, reaching $7.5 million, primarily fueled by rising demand for wireless RF devices, while InP revenue surged to $13.1 million from $3.6 million, benefitting from a more favorable export license environment. AXT is poised for continued growth, supported by the increasing demand for III-V materials and the transition to optics to enhance networking bandwidth.
Bears say
AXT Inc reported a significant decline in total revenues, which fell to $18.0 million in Q2, marking a 7.4% quarter-over-quarter decrease and a sharp 35.6% year-over-year decline, highlighting persistent challenges in its business environment. The company's raw material sales also reflected a troubling trend, decreasing by 20% quarter-over-quarter and 19% year-over-year, while their reliance on raw materials constituted approximately 38% of total revenues, significantly higher than the five-year average of 25%. Additionally, ongoing issues with export licenses are creating substantial operational headwinds, with management unable to project normal sales levels, further compounding AXT's difficulties amid prevalent macroeconomic uncertainties.
This aggregate rating is based on analysts' research of AXT and is not a guaranteed prediction by Public.com or investment advice.
AXT (AXTI) Analyst Forecast & Price Prediction
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