AXT Inc.'s stock increased 28-fold over the past three years. Its current valuation faces scrutiny. An analysis suggests the stock appears expensive based on market multiples. The stock scores low on several valuation checks.
Investors debate whether AXT can sustain the high expectations built into its price. Bulls cite accelerating global demand for its indium phosphide (InP) substrates. AI and data centers drive this demand.
Bears express concern about unpredictable export permit delays from China. Trade restrictions could limit revenue growth despite strong demand.