Tiny AI Stock Soared 3,350% After Liberation Day

One year after Trump's Liberation Day tariffs rattled markets, semiconductor wafer maker AXT emerged as the biggest stock winner, delivering a 3,353.60% return while the S&P 500 gained just 16%. Despite its China-based factories facing export delays and an 11.1% revenue drop, investors rewarded the company's deep ties to AI infrastructure. AXT makes indium phosphide wafers used in high-speed optical transceivers inside AI data centers. Demand surged, with InP revenue hitting $8 million in Q4 2025 and a backlog topping $60 million. The company plans to double InP capacity by end of 2026, though risks remain given its high valuation and ongoing export approval hurdles.