Why Is AXT (AXTI) Stock Price Up 28.74% Today, July 31? Earnings and Optical Demand Reset Expectations

AXT shares surged after Q2 results showed record revenue and a return to GAAP profitability, improving near-term demand visibility for indium phosphide substrates used in data-center optical connectivity. A long-dated capacity reservation agreement with Lumentum added credibility to multi-year demand, though execution risks remain around capacity ramp and export permissions. Despite the sharp repricing, the stock closed below key moving averages, implying elevated post-earnings volatility.