AXT stock jumps premarket after export-permit update lifts Q1 hopes
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AXT stock jumps premarket after export-permit update lifts Q1 hopes

February 20, 2026
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New York, Feb 20, 2026, 06:53 EST — Premarket

  • AXT shares pop in premarket trading following quarterly results and fresh news on export permits.
  • The CEO is eyeing permit approvals by early 2026, and wants to drive revenue higher quarter-on-quarter starting in Q1.
  • Chip stocks are trading mixed, with investors looking for signs that shipments and margins are starting to steady.

Shares of AXT Inc surged 5.2% to $25.04 in premarket action as of 6:43 a.m. EST Friday, boosted by upbeat commentary from the chip-wafer supplier on export permit developments and expectations for a stronger first quarter. The stock settled at $23.81 Thursday.

This shift is notable—AXT now stands in for a niche corner of the AI hardware surge: indium phosphide wafers, essential for high-speed optical components that shuttle data through data centers. Where permits go, shipments tend to follow.

Permitting has been the snag. AXT, which runs its manufacturing out of China, is still waiting for the green light on exports of indium phosphide—a key compound semiconductor material.

Fourth-quarter revenue landed at $23 million, with the company posting a net loss of $3.5 million, or 8 cents a share. Adjusted numbers—excluding stock option expenses—show a loss of 5 cents per share, according to an AP earnings snapshot.

AXT fell short of analyst forecasts, according to numbers from a Zacks Investment Research poll mentioned in the AP report. The consensus from Zacks was for a loss of 4 cents per share.

AXT CEO Morris Young said the company has “received some permits to date in 2026,” adding that he expects “sequential revenue growth in Q1.” The main push, he noted, comes from rising indium phosphide demand connected to AI infrastructure. SEC

Chip stocks struggled early, with the iShares Semiconductor ETF off about 0.6% in premarket moves. The VanEck Semiconductor ETF fell by a similar margin—meanwhile, AXT managed to move against the trend.

The permit issue isn’t a one-way street. Should the pace of approvals stall, AXT finds itself unable to move product, and that can whip quarter-to-quarter figures around quickly—particularly given its size and focused manufacturing base.

On Thursday, AXT submitted a Form 8-K, attaching the earnings release as an exhibit.

Traders now turn to updates on permit timing and the outlook for Q1 orders, eyeing whether the stock sustains its premarket gain into the session. The company noted the earnings call replay remains accessible until Feb. 26.

Artur Ślesik

Artur Ślesik is a technology and financial markets journalist at Bez-kabli.pl, covering artificial intelligence, semiconductors, technology stocks and emerging innovations. A graduate of Warsaw University of Technology, he combines a technical background with market analysis to explain how new technologies are shaping industries, businesses and investment trends worldwide.

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