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# AXT Stock Soars 8%, Adding $291 Million, As China Unit Lines Up Up To $545 Million
- URL: https://www.bullished.co/axt-stock-soars-8-adding-291-million-as-china-unit-lines-up-up-to-545-million-23973be2/
- Published: 2026-10-28T16:48:23.000Z
- Updated: 2026-10-28T16:48:23.000Z
- Description: The wafer maker's Tongmei subsidiary plans a private share sale of $285 million to $545 million to expand indium phosphide capacity.
- Author: Matteo Parrino
- Tags: Markets, AXTI, Industry: Technology

AXT shares [climbed 7.62%](https://seekingalpha.com/news/4657614-axt-climbs-8-as-recent-volatile-trading-continues?ref=bullished.co) to $62.67 in Wednesday trading, as of 12:47 p.m. ET, adding about $291 million in market value, after its majority-owned Tongmei unit in China said it would [raise up to $545 million](https://seekingalpha.com/news/4658885-axt-subsidiary-secures-up-to-545m-in-private-equity-financing?ref=bullished.co) from institutional investors. AXT, which makes specialty semiconductor wafers called substrates, [announced the plan](https://www.sec.gov/Archives/edgar/data/0001051627/000121390026113058/ea0309774-8k%5Faxt.htm?ref=bullished.co) the same day.

## A $285 million to $545 million private placement

Tongmei plans to sell new shares privately to institutions in a financing of $285 million to $545 million, tied to a Hong Kong IPO effort. The money would pay for expanding indium phosphide substrate capacity, along with operations, capital spending and working capital, per the company's announcement.

The move was on pace to be AXT's third gain of 7% or more this month and its fourth straight daily gain.

## Wafers for AI data centers

AXT makes substrates from indium phosphide, gallium arsenide and germanium for uses where ordinary silicon falls short, including data center optical links, 5G equipment, lasers and sensors. It does not make the chips themselves. Substrates were 67% of 2025 revenue and raw materials 33%, and all of its products are made in China by subsidiaries and joint ventures.

Its [second-quarter revenue rose 164.8%](https://www.sec.gov/Archives/edgar/data/1051627/000143774926027677/axti20260630%5F10q.htm?ref=bullished.co) to $47.6 million, against $26.9 million in the first quarter, with net income of $11.1 million versus a $7.0 million loss a year earlier. CEO Morris Young said the company had reached "an inflection point in our business." The company says its indium phosphide backlog exceeds [$100 million](https://nz.finance.yahoo.com/news/axti-stock-q3-earnings-release-151100172.html?ref=bullished.co).

## Up 256% this year, but far off the peak

Shares were up about 256% year to date at Tuesday's close, well ahead of the S&P 500's roughly 13% gain. They had still fallen 26% over the prior month and sat 59% below their May 22 peak close.

AXT is scheduled to report third-quarter results right after the market closes on Thursday, with a conference call at 1:30 p.m. PT.

AXT reports third-quarter results after Thursday's close.

### Sources

- [AXT climbs 8% as recent volatile trading continues (AXTI:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4657614-axt-climbs-8-as-recent-volatile-trading-continues?ref=bullished.co) — seekingalpha.com
- [AXT subsidiary secures up to $545M in private equity financing | Seeking Alpha](https://seekingalpha.com/news/4658885-axt-subsidiary-secures-up-to-545m-in-private-equity-financing?ref=bullished.co) — seekingalpha.com
- [AXTI Stock Before Q3 Earnings Release: To Buy or Not to Buy?](https://nz.finance.yahoo.com/news/axti-stock-q3-earnings-release-151100172.html?ref=bullished.co) — Yahoo Finance
- [AXT, Inc. Schedules Third Quarter 2026 Earnings Release for October 29, 2026 – Company Announcement - FT.com](https://markets.ft.com/data/announce/full?dockey=600-202610011605BIZWIRE%5FUSPRX%5F%5F%5F%5F20261001%5FBW072530-1&ref=bullished.co) — Financial Times
- [TTMI vs. AXTI: Which AI Infrastructure Stock Is the Better Pick?](https://finance.yahoo.com/technology/ai/articles/ttmi-vs-axti-ai-infrastructure-104200336.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [The company's filing (AXT Inc.)](https://www.sec.gov/Archives/edgar/data/0001051627/000121390026113058/ea0309774-8k%5Faxt.htm?ref=bullished.co) — SEC filing
- [AXT Inc. — Form 10-Q for the quarter ended 2026-06-30 (quarterly results)](https://www.sec.gov/Archives/edgar/data/1051627/000143774926027677/axti20260630%5F10q.htm?ref=bullished.co) — SEC EDGAR
- [AXT — earnings release (Form 8-K, Item 2.02), filed 2026-07-30](https://www.sec.gov/Archives/edgar/data/0001051627/000143774926025061/ex%5F974537.htm?ref=bullished.co) — SEC EDGAR