Summary
AXT's blowout quarter — with record revenue, $30.7M in InP, and major margin gains — validates the author's thesis that the real ramp hasn't even started yet. The resulting >25% after-hours surge, following a >25% intraday move, signals renewed market appetite for semis with genuine earnings beats and suggests continued upside for AXT as the InP story builds.
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•AXT reported its highest quarterly revenue in company history, with InP revenue of $30.7M, GaAs of $6.6M, germanium of $272K, and consolidated raw material JV revenue of $10.0M.
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•Customer concentration remains modest: top 5 customers are ~30% of total revenue and no single customer exceeds 10%.
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•The stock surged more than 25% after hours after already gaining more than 25% during market hours, immediately validating the author's $37 entry price.
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•The author highlights 'crazy margin improvements' and stresses that the InP ramp 'hasn't even really started yet,' leaving the growth narrative intact.