Financial Performance - AXT, Inc. updated revenue expectations for Q4 2025, with unaudited financial results to be released on January 8, 2026[5] - The press release regarding financial results is attached as Exhibit 99.1[9] Company Information - The company is incorporated in Delaware and trades on the NASDAQ under the symbol AXTI[4]

Company Performance - Tilray Brands Inc reported quarterly earnings of $0.01 per share, surpassing the Street estimate of a loss of $0.20 per share [1] - The company's quarterly revenue reached $217.51 million, exceeding the consensus estimate of $210.95 million [1] - Following the earnings report, Tilray Brands shares increased by 7.3% to $9.80 in pre-market trading [1] Market Movements - Several stocks experienced significant movements in pre-market trading, with RenX Enterprises Corp gaining 51.9% to $0.29 after a previous decline [5] - China SXT Pharmaceuticals Inc rose 37.6% to $1.72 after a substantial drop [5] - Offerpad Solutions Inc increased by 36.8% to $2.08 following a new proposal by President Donald Trump [5] - Cemtrex Inc surged 34.5% to $3.90 after completing an acquisition and launching a new segment [5] Notable Declines - Stak Inc fell 16.4% to $0.35 after announcing a registered direct offering [5] - Olin Corp's shares dipped 11.7% to $19.92 after cutting its fourth-quarter adjusted EBITDA outlook [5] - WD-40 Co reported worse-than-expected first-quarter financial results, leading to a 9.1% decline to $185.00 [5]

Group 1 - Global-E Online has experienced a 30% decline in value over the past year despite revenue growth and profit margin expansion, primarily due to its high P/E ratio of 946, although its forward P/E is more attractive at 39.4 [1] - The company faces competition from e-commerce giants, which may hinder its ability to gain market share [9] Group 2 - AXT is a small-cap company that has recently surpassed a $1 billion market capitalization, with a significant increase of over 700% in its stock price over the past year [8] - AXT holds 40% of the indium phosphide supply, a critical semiconductor material for AI infrastructure, and has seen its revenue for this segment grow by more than 250% sequentially [6][7] - The demand for indium phosphide is surging, indicating strong growth potential for AXT as AI infrastructure continues to expand [7]

Group 1 - The analyst team has a proven track record of outperforming across all market conditions, achieving an annualized return of almost 40% over the past decade with a long-only model portfolio return of over 23 times [1] - The focus is on providing income-oriented investment options for those preferring lower-risk firms with steady dividend payouts [1] - The company specializes in research related to the energy, shipping, and offshore markets, indicating a strong expertise in these sectors [1] Group 2 - AXT, Inc. (AXTI) has been previously covered, and this article serves as an update to earlier analyses of the company [2] - The analyst has a historical focus on tech stocks but has expanded coverage to include the offshore drilling and supply industry, as well as the shipping industry [3] - The analyst has experience in navigating significant market events, including the dotcom bubble and the subprime crisis, which adds credibility to the research provided [3]

Market Overview - U.S. stocks showed mixed performance, with the Dow Jones index declining approximately 0.2% on Wednesday [1] Company Highlights - Monte Rosa Therapeutics Inc (NASDAQ:GLUE) experienced a significant increase in share price, rising 45.2% to $23.25 after announcing interim data from a Phase 1 clinical study for MRT-8102 [1] - Ventyx Biosciences Inc (NASDAQ:VTYX) shares surged 37.5% to $13.82 following reports of advanced acquisition talks with Eli Lilly & Co. (NYSE:LLY) for over $1 billion [2] - Neumora Therapeutics Inc (NASDAQ:NMRA) saw a rise of 24.7% to $2.27 [2] - Regencell Bioscience Holdings Ltd (NASDAQ:RGC) increased by 21.1% to $40.00 [2] - Erasca Inc (NASDAQ:ERAS) rose 17.1% to $4.25, with Piper Sandler initiating coverage with an Overweight rating and a price target of $5 [2] - Anywhere Real Estate Inc (NYSE:HOUS) gained 15.6% to $16.71 [2] - AXT Inc (NASDAQ:AXTI) increased by 13.8% to $22.96 [2] - Immuneering Corp (NASDAQ:IMRX) rose 13.1% to $7.60 [2] - Compass Therapeutics Inc. (NASDAQ:CMPX) gained 13.1% to $5.56 [2] - MBX Biosciences Inc (NASDAQ:MBX) rose 11.2% to $31.90 [2] - Rezolve AI PLC (NASDAQ:RZLV) increased by 10.8% to $3.36 [2] - United Microelectronics Corp (NYSE:UMC) gained 10.4% to $8.96 after reporting sales growth for December and the full year [2] - PBF Energy Inc (NYSE:PBF) rose 9.2% to $29.73 [2] - Navan Inc (NASDAQ:NAVN) increased by 8.3% to $18.42 [2] - Ascentage Pharma Group International (NASDAQ:AAPG) gained 8.3% to $28.17 after announcing IND clearance for BTK Degrader APG-3288 by the U.S. FDA [2] - Intel Corp (NASDAQ:INTC) rose 6.4% to $42.60 as the company is enhancing its gaming strategy by developing a new chip for handheld gaming devices [2]

Core Viewpoint - AXT Incorporated's stock has surged approximately 10% to a 52-week high, driven by favorable changes in export regulations from China and increasing demand for semiconductor materials, particularly in AI and data center applications [1][5][8]. Company Performance - AXT Incorporated reported a remarkable year-over-year earnings increase of 250% in Q3, with a sequential quarter growth of 50% and a backlog of $49 million specifically in the AI data center sector [5][6]. - The company's total sales have been growing, with current revenues around $650 million, indicating strong performance for a smaller-cap company [6][8]. Market Dynamics - The demand for semiconductors and optoelectronic equipment is rising across various industries, including data centers, AI computing, 5G infrastructure, and LED lighting [4][6]. - The reversal of export bans on gallium and germanium from China has opened up new opportunities for AXT to sell to overseas markets, enhancing their competitive position [1][7][8]. Industry Context - The semiconductor industry is experiencing significant growth, with companies like Micron, Western Digital, and Seagate also performing well, contributing to a favorable market environment for AXT [2][4]. - China's new manufacturing rules require chip makers to use at least half of domestic chip equipment for capacity expansion, which may impact AXT's operations and market strategy [10][11]. Future Outlook - Analysts expect AXT to break even in the next fiscal year, with projected earnings of 39 cents per share by 2027, indicating potential for profitability and further stock price appreciation [16][17]. - The stock has shown a parabolic increase, with over 600% growth in the past year and 270% over the last three years, reflecting strong investor sentiment and market performance [8][14].

Core Viewpoint - AXT, Inc. has successfully closed its underwritten public offering, raising approximately $100 million through the sale of common stock at a price of $12.25 per share, including the full exercise of the underwriters' option to purchase additional shares [1] Group 1 - The company offered a total of 8,163,265 shares of common stock [1] - The underwriters exercised their option to purchase an additional 1,064,773 shares [1] - The total gross proceeds from the offering amounted to approximately $100 million [1]

Company Overview - OceanFirst Financial Corp. announced plans to acquire Flushing Financial Corporation in an all-stock deal valued at $579 million [1] - Following the announcement, OceanFirst Financial shares fell 7.4% to $18.15 [1] - Flushing Financial Corporation's shares also declined by 9.5% to $15.28 after the merger agreement was revealed [5] Market Movements - Profusa, Inc. shares surged 112% to $0.1445 after restructuring its senior secured convertible note [4] - Antelope Enterprise Holdings Limited rose 99% to $2.25, while Oriental Culture Holding LTD gained 68% to $0.1395 [4] - Ekso Bionics Holdings, Inc. saw a 54.3% increase to $8.43, attributed to positive investor sentiment [4] - Cemtrex, Inc. climbed 52% to $3.2118 as it returned to profitability despite a going-concern warning [4] Strategic Investments - OceanFirst Financial Corp. and Flushing Financial Corporation announced a $225 million strategic investment from Warburg Pincus as part of their merger agreement [5]

Core Viewpoint - AXT, Inc. has announced a public offering of common stock, aiming to raise approximately $87 million through the sale of 7,098,492 shares at a price of $12.25 per share [1]. Group 1: Company Details - AXT, Inc. is a leading manufacturer of compound semiconductor wafer substrates [1]. - The public offering is underwritten, indicating that the shares will be sold through a financial institution that guarantees the sale [1]. Group 2: Financial Aspects - The gross proceeds from the offering are expected to be around $87 million before deducting underwriting discounts, commissions, and other expenses related to the offering [1].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Company Overview - AXT (AXTI) currently holds a Momentum Style Score of B, indicating a favorable momentum characteristic [2] - AXT has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Group 2: Performance Metrics - AXT shares have increased by 27.89% over the past week, while the Zacks Electronics - Semiconductors industry has declined by 1.05% during the same period [5] - Over the last quarter, AXT shares have risen by 170.83%, and over the past year, they have surged by 470.17%, significantly outperforming the S&P 500, which has moved 3.47% and 13.15% respectively [6] Group 3: Trading Volume - AXT's average 20-day trading volume is 3,453,155 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 4: Earnings Outlook - In the past two months, three earnings estimates for AXT have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from -$0.55 to -$0.38 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9] Group 5: Conclusion - Given the positive momentum indicators and earnings outlook, AXT is positioned as a strong buy candidate with a Momentum Score of B, making it a noteworthy pick for investors [10]