
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc. reported a significant 23.0% year-over-year revenue increase in the fourth quarter and a sequential growth of 6.4%, underscoring robust demand for its semiconductor substrates. The company's InP revenue surged by 73% year-over-year, reflecting strong performance driven by the anticipated growth of AI-related applications, with management projecting a 20% growth in this segment by 2025. Furthermore, AXT's position within a consolidated GaAs and InP substrate market, which is expected to grow by 30% this year, positions the company well to capture additional market share and benefit from the recovery in global demand across various sectors.
Bears say
AXT Inc. has reported a significant decrease in gross margins, falling from 24.3% in the third quarter to 17.9%, primarily due to reduced benefits from recycling and lower growth in ingot production, indicating operational challenges. The company's earnings per share (EPS) also missed consensus estimates, reflecting the negative impact of these gross margin headwinds and China's recent export restrictions that are expected to further reduce InP revenue by approximately $5 million in the first quarter. Furthermore, management's guidance for the first quarter of 2025 has been lowered below both prior quarter performance and analyst estimates, forecasting midpoint revenue of $19 million and an EPS of ($0.14), suggesting a continued downturn in financial performance.
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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