AXT AXTI shares ended the last trading session 17% higher at $53.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 2.6% gain over the past four weeks.
AXT benefits from AI Data Center & Optical Networking Boom, surging Indium Phosphide demand, rapid China AI and Data Center Expansion, expanding Tier-1 Customer base and transition to Advanced Optical Technologies.
This semiconductor materials supplier is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +79%. Revenues are expected to be $26.37 million, up 36.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For AXT, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AXTI going forward to see if this recent jump can turn into more strength down the road.
AXT belongs to the Zacks Electronics – Semiconductors industry. Another stock from the same industry, GlobalFoundries Inc. GFS, closed the last trading session 8.8% higher at $47.8. Over the past month, GFS has returned -5.8%.
For GlobalFoundries, the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $0.35. This represents a change of +2.9% from what the company reported a year ago. GlobalFoundries currently has a Zacks Rank of #3 (Hold).
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