On August 27, AXT Inc rose 8.02% overnight, trading at $70.45 per share, with turnover of $9.18 million.

The stock continued its recovery after NVIDIA's announcement that CPO technology had entered mass production previously triggered indiscriminate selling across the optical communication sector, causing AXT to plunge over 8%. The market has since recognized that indium phosphide substrates remain irreplaceable as the core light source material in CPO architecture, and the prior sell-off was characterized as emotional mispricing.

Downstream customers Lumentum and Coherent have both signed long-term supply agreements with AXT, with the current supply-demand gap exceeding 30%. The company plans to triple capacity year-over-year by year-end, with demand already locked in. AXT reported record Q2 indium phosphide revenue in late July, with adjusted EPS of $0.19 versus consensus of $0.07, and revenue surging 165% year-over-year to $47.6 million.

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