AXT Inc. (AXTI) shares rose more than 10% during intraday trading on September 16. Investment firm Needham identified the company as a primary beneficiary of the emerging co-packaged optics (CPO) trend.
The analyst note followed a visit to SEMICON Taiwan 2026. Needham highlighted CPO as a critical technology for resolving networking bottlenecks in artificial intelligence infrastructure.
Needham named AXT as one of five semiconductor companies poised to benefit from this technological shift. The firm identified AXT's indium phosphide (InP) substrate business as central to the CPO ramp-up.
This positive outlook builds on AXT's recent financial performance. The company reported record second-quarter revenue and a return to profitability.