"AXT's factories sit mainly in China, so the new tariffs and tightened export controls hit immediately. The company faced delays securing permits for indium phosphide shipments."
"In the fourth quarter of 2025 alone, InP revenue reached $8 million - mostly from data-center applications - while the company's InP backlog topped $60 million."
"Smart investors, though, who looked past the headlines spotted something bigger at AXT: a direct tie to the AI build-out."
President Trump declared April 2, 2025, as 'Liberation Day' and introduced reciprocal tariffs, impacting AXT's revenue and margins initially. Despite early stock volatility, the S&P 500 rose 16% over the year. AXT, a maker of indium phosphide wafers for AI data centers, saw demand surge, with Q4 2025 InP revenue reaching $8 million and a backlog exceeding $60 million. The company plans to double its InP manufacturing capacity by 2026, leveraging existing resources to meet growing demand.
Read at 24/7 Wall St.
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