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AXTI's $748.8M liquidity, $100M-plus InP backlog and planned capacity expansions position it to meet strong AI data-center demand.
AXT, Inc. AXTI has the financial strength to support aggressive indium phosphide (InP) capacity expansion, positioning the company to capitalize on strong AI data-center demand.AXT ended the second quarter with $748.8 million in cash, cash equivalents and investments, up $625.6 million sequentially, primarily following its April secondary offering, which generated approximately $632 million before expenses. This strengthened liquidity provides financial flexibility to expand its manufacturing footprint.The timing is favorable because InP demand continues to exceed supply. AXT has committed to doubling InP capacity in 2026 and is ahead of schedule while planning another expansion in 2027. Its InP backlog has surpassed $100 million, providing visibility into future demand.Customer commitments further strengthen the outlook. Long-term agreements with Casela and Coherent include wafer commitments and prepayments, while AXT’s Lumentum agreement reserves InP capacity through 2031.Importantly, AXT’s second-quarter revenues reached a record $47.6 million, while GAAP gross margin climbed to 44.9%. The Zacks Consensus Estimate projects 2026 and 2027 revenue growth of 146.4% and 108.4%, respectively. Thus, strong liquidity and planned InP expansion provide a solid foundation for continued growth.
