Q2 Preview

Research evidence excerpt

Q2 Preview

Company Report

July 14, 2026 AXT Inc. (AXTI)

Rating: Q2 PreviewOUTPERFORM

Price:

$50.46 A Number of Reasons to Believe Demand is Tracking Better

12-Month Price Target:

As a reminder, AXTI's guidance was dictated by export licenses the company

$93.00 had received from the Chinese government. With license grants having been the

primary bottleneck for AXTI the last few quarters (resulting in order backlog that

Analysts now exceeds $100M) see several intra quarter data points as offering a more

Matt Bryson optimistic outlook on this front (and moving forward).

(617) 695-6302 ● Landmark reported sales of NT$421M for June. As such, Q2 revenues grew 35%

matthew.bryson@wedbush.com from Q1 and were up 120% Y/Y.

Antoine Legault, CFA, CPA

(626) 497-1619 Landmark has been one of AXT's few noted 10% customers in recent years. As

antoine.legault@wedbush.com such, we see this growth as a positive sign for AXT's Q2 (even with Landmark

also having recently signed a deal for substrate supply with Sumitomo).

● Tongmei signed a deal with Coherent committing to developing and supplyingCompany Information - Hardware

Market Cap (M) $3,743 6" substrates over a 3-year period:

Enterprise Value (M) $3,796 ■ With the deal forfeit if AXTI is unable to meet agreed upon shipments, we

52-Week Range $1.85 - $143.16 see this agreement as a sign that AXTI is confident in its ability to export

REV (M) in $ substrate moving forward.

FYE Dec 2025A 2026E 2027E ■ The supply of 6" substrates (rather than 3" or 4" material) in our view

Q1 Mar 19.4A 26.9A 43.4E validates AXTI's claims its technology is more advanced than most/many of

Q2 Jun 18.0A 34.1E 51.6E its peers, with most producers other than AXTI and Sumitomo (to the best Q3 Sep 28.0A 36.6E 55.0E