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Wedbush and Northland Boost AXTI Price Target Amid Rising Indium Phosphide Demand

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 2/24/2026, 5:03 pm ET 2/24/2026, 5:03 pm ET | 4 min 4 min read
Wedbush and Northland Boost AXTI Price Target Amid Rising Indium Phosphide Demand Thumbnail

On Tuesday, AXT Inc’s stocks soared 22.41% amid investor optimism following AXT Inc’s promising breakthrough in semiconductor development.

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Live Update At 17:03:17 EST: On Tuesday, February 24, 2026 AXT Inc stock [NASDAQ: AXTI] is trending up by 22.41%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Overview

AXT Inc’s stock price has experienced significant fluctuations recently, moving from $29.68 to $35.08. The revised price targets from Wedbush and Northland are $28 and $35 respectively, indicating a bullish sentiment specifically linked to the anticipated growth in demand for indium phosphide substrates. These substrates are essential in the burgeoning field of AI, and the demand sparked by tech giants like Google and Amazon is driving this market expectation.

In the latest quarter, AXT Inc. reported a drop in revenue to $23M, down from $25.1M in the previous quarter. Meanwhile, the firm suffered a non-GAAP loss of $0.05 per share, though this is an improvement compared to the $0.10 loss last year. Although overall Q4 results were not up to expectations, AXT anticipates sequential revenue growth in Q1, pinned on larger customer bases adopting their products and expansion plans in AI infrastructure.

Rising Market Demand: Indium Phosphide Growth

More Breaking News

In a sector as fluid as technology, being ahead of the curve is particularly crucial. Now, as a trusted expert, Northland expects indium phosphide substrates to fuel growth for AXT Inc. These substrates are key to AI-related optical lasers and components, areas which are seeing increased capex from technology leaders. The broader AI investments by enormous corporations like Google and Amazon lend credibility and support to this growth prediction.

Navigating Challenges: Export Permits and Revenue Risks

AXT Inc has faced a substantial hurdle: export permits. Management noted permit uncertainties have bottlenecked some of their operational potential, affecting revenue targets. However, the firm has taken strides to mitigate these impacts, working in a stronger export-permit position compared to earlier in 2025. Furthermore, their ambition to pursue an IPO in Shanghai is designed to diversify and stabilize their revenue streams.

In essence, those same export challenges that once posed significant roadblocks now present a backdrop against which AXT’s adaptive strategies are being tested.

Conclusion

Despite softer-than-expected Q4 results, AXT Inc. remains on an ascending path bolstered by growth in demand for indium phosphide substrates. With favorable endorsements from Wedbush and Northland, the company’s stock outlook is brightening, surrounded by advances in AI and broader tech advancements.

In a trading context, this optimism is further underscored by the sentiment that, as millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This cautious yet optimistic approach is crucial as AXT navigates market complexities.

Overall, if AXT successfully maneuvers the hurdles of export limitations and continues to fortify its manufacturing capabilities, the forecasts point towards a more positive financial trajectory in the coming quarters. The company’s endeavors to widen the customer base and double manufacturing capacities further emphasize its growth potential, even amid broader market adversities.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”