AXT Inc. (NASDAQ:AXTI) is a company that produces advanced semiconductor materials. Its key product, indium phosphide, is essential for components used in artificial intelligence (AI), data-center networking, and silicon photonics. This places the company in a critical role within the expanding technology infrastructure sector.
On June 10, 2026, a director at AXT Inc., CHEN JESSE, sold 9,000 shares of common stock. The shares were sold at a price of $86.73 each, resulting in a total transaction value of approximately $780,580.00. Following this sale, the director now holds 78,447 shares in AXT Inc.
This insider sale occurs during a period of extreme price volatility for AXT Inc. While the stock has gained over 4178% in the past year, it has recently seen a sharp decline. The share price fell 29.4% over the past week and 32.7% over the past month, highlighting significant market fluctuations.
Despite the stock's recent drop, AXT Inc.'s business is growing strongly. The company's indium phosphide order backlog has surpassed $100 million, as highlighted by Zacks.com, driven by AI-related demand. First-quarter 2026 revenues increased 39.1% year-over-year to $26.9 million, and the company plans to double production capacity in 2026 and 2027.
However, some analyses suggest the stock may be overvalued. As highlighted by GuruFocus, AXT Inc. is considered "significantly overvalued" with a value estimate of $2.58. This director's sale is part of a larger pattern, with insiders selling a total of $40.3 million worth of stock in the last three months.
