The past few days have been a rollercoaster for AXT investors. After a pre-market pop of 7.3% on Monday on the back of a fresh supply agreement, the stock reversed course violently on Tuesday, sliding into the red as the broader semiconductor selloff deepened. By the close, shares had shed 10.39% to trade at 72.80 euros — a stark reminder of the 148.82% annualized volatility that now defines this name.
Earlier in the session, the equity had already fallen 8.2% to 74.58 euros, and the Relative Strength Index now hovers around the 44 level, signaling neutral momentum but doing little to arrest the slide. Since notching a 52-week high of over 128
A $25 Million InP Supply Pact
Amid the turbulence, AXT secured a significant contract with Nanjing Casela for the delivery of indium phosphide (InP) substrates, critical materials for high-performance chips used in telecommunications and computing. The deal is valued at approximately $25.4 million on a monthly basis, with roughly one-fifth of AXT’s modeled InP revenues in 2027 expected to come from this agreement.
The financial structure provides immediate liquidity: a 50% down payment is due within 15 business days, and the remaining balance is scheduled to flow in by the end of 2026.
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Board Strengthening for the AI Era
The company is also fortifying its leadership amid the storm. Effective June 17, 2026, Tracy Liu joins the board of directors, expanding it from four to five members. Liu, who brings over three decades of experience in tax strategy and accounting, previously served at a Big Four firm and currently chairs the audit committee at ACM Research. Her remit at AXT includes audit and compensation oversight, with a focus on helping the company solidify its vertically integrated supply chain in China.
Liu’s appointment comes as AXT aims to ramp up InP wafer production, particularly for optical data transmission components that are essential to artificial intelligence infrastructure.
Technical Pressure and Insider Chatter
The stock remains under technical pressure. The wide gap between the current price and the 52-week high continues to weigh on chart sentiment, while recent insider activities have sparked additional chatter among market participants. Still, the 52-week low of 9.30 euros sits far in the rearview mirror, offering a long-term perspective for those willing to endure the volatility.
Operationally, all eyes are on the expansion of AXT’s Chinese subsidiary Tongmei, which must now navigate the shift from strategic planning to tangible progress in opto-communication technologies. Whether the new board member and the Nanjing Casela contract can help steady the ship remains to be seen — but for now, AXT is betting on both to ride out the sector-wide rout.
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