AXT Stock: AI Inflection Point Finally Arrives

AXT Inc. (AXTI) trades well below its recent equity offering price, creating what analyst Ryan Canady calls a strong buy opportunity ahead of Q2 2026 earnings. Management guides for $34M revenue and $0.06–$0.08 non-GAAP EPS, with Indium Phosphide revenue expected to exceed $17M, a company record. Canady acknowledges his original May buy call was premature, with shares having fallen since. Key metrics to watch include a $100M+ backlog, potential inflection to profitability, and a GAAP gross margin above 30%, which would signal meaningful operational improvement.