Shares of AXT Inc plunged to $81.67, a 10% single-session decline, as speculative trading tied to newly listed perpetual futures contracts continued to whipsaw a stock that has shed over 26% from its June 2 close of $110.85 in just five trading days — all without a single piece of fundamental news. AXT Loses 26% in Five Days on Pure Speculation — Can a Real Business Survive Being Treated Like a Meme Stock?
Shares of AXT Inc cratered 10% to $81.67 on June 9, extending a brutal streak that has erased over $29 per share — roughly 26% — since the stock closed at $110.85 on June 2. The catalyst is not a missed earnings report or a lost contract. It is the collision of a legitimate semiconductor company with a speculative trading apparatus that has turned its stock into a volatility playground.
Crypto Futures and Leveraged ETFs Have Built a Casino Around the Stock. AXTIUSDT is now live on Bitget's stock perpetual futures market, giving traders leveraged, 24/7 exposure with USDT settlement and no brokerage account required. Separately, REX Shares and Tuttle Capital Management launched the T-REX 2X Long AXTI Daily Target ETF (AXTU) on May 5, 2026, providing 2x daily long exposure to AXT. These products let speculators amplify bets on daily swings. When momentum reverses, as it did starting June 4, leveraged products force liquidations that accelerate the sell-off far beyond what fundamentals justify.
Insiders Cashed Out Right Before the Crash. CEO Morris S. Young exercised options for 85,703 shares at $5.21 and sold 197,498 shares at weighted average prices of $112–$113 on June 1–2.
Director Jesse Chen sold 10,133 shares at weighted average prices around $108–$111. While routine, the timing — days before a $29 collapse — raises uncomfortable optics for remaining shareholders.
The Underlying Business Is Improving, But Doesn't Support This Price. Q1 revenue was $26.9 million, up from $19.4 million a year ago.
AXT beat its earnings-per-share forecast by 80%, and non-GAAP gross margin improved to 29.9% from negative 6.1% a year earlier. But the company still lost money — non-GAAP net loss was $0.6 million, or $0.01 per share.
One valuation model pegs fair value at just $2.59, calling the stock over 4,000% overvalued.
A $632 Million Bet on AI Demand Adds Both Promise and Dilution Risk. AXT raised roughly $632.5 million via a public offering at $64.25 per share, earmarked to expand indium phosphide substrate production for AI-focused data centers.
The company reports a record $100 million indium phosphide backlog. That is a real growth story — but the offering added over 9.8 million shares, diluting existing holders just as speculative products amplify every price swing. Shareholders now face a stock driven less by what AXT makes and more by who is trading it.