AXTI stock touches 52-week low at $1.28 amid market challenges

Published 04/04/2025, 15:50
AXTI stock touches 52-week low at $1.28 amid market challenges

In a challenging market environment, AXT Inc (NASDAQ:AXTI), a developer of compound semiconductor substrates, has seen its stock price touch a 52-week low of $1.28, with concerning financial metrics including negative EBITDA of -$5.82M and a weak overall financial health score, according to InvestingPro analysis. This downturn reflects a significant retreat from better-performing times, with the stock experiencing a stark 1-year decline of 57% and a concerning six-month drop of 45%. Despite these challenges, InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels. Investors are closely monitoring the company’s performance, with 13 additional ProTips and comprehensive analysis available in the Pro Research Report, as the current price point could signal a critical juncture for AXTI’s market valuation and future prospects.

In other recent news, AXT Inc reported its financial results for Q4 2024, which showed a revenue of $25.1 million, falling short of the expected $27.6 million. The company also reported a loss of $0.10 per share, significantly missing the forecasted loss of $0.02 per share. Despite a year-over-year revenue growth of 22.5% for Q4 and a 31% increase for the full year, AXT is facing challenges due to export restrictions impacting its indium phosphide sales. The company has provided guidance for Q1 2025, expecting revenue between $18 million and $20 million and a non-GAAP net loss per share ranging from $0.13 to $0.15. Analysts from Craig Hallum have inquired about the company’s gross margins and operational expenses, noting the impact of export restrictions on indium phosphide. AXT’s leadership remains optimistic about recovering delayed sales in subsequent quarters, focusing on low EPD substrate development. Additionally, the company is navigating a complex geopolitical landscape, particularly concerning trade restrictions with China, which could affect future sales.

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