FREMONT, CALIFORNIA (Feb 23, 2026) — Wedbush Securities has significantly boosted its price target for AXT, Inc. (NASDAQ:AXTI), lifting it from $8.50 to $28.00 in a research note released Friday, according to a report on American Market News. The firm also maintained an outperform analyst rating on the semiconductor substrate supplier, reflecting heightened expectations for the company’s growth prospects.
Wedbush’s new $28.00 target suggests investors could see continued upside in AXT shares, though the report pointed out that the upside from the previous close might be limited. This revision comes amid a flurry of analyst commentary: Needham & Company recently downgraded AXT from a “buy” to a “hold\, while Wall Street Zen upgraded the stock from “sell” to “hold”. Northland Securities placed a $20.00 target on the stock, and UBS Group set a $35.00 objective, illustrating a range of expectations among industry analysts.
Shares of AXTI opened at approximately $29.68 on Friday, trading near their 12-month high of $30.80. The company’s market capitalization stands around $1.64 billion, and key technical indicators show a 50-day moving average well above the 200-day average, signaling strong recent momentum.
Financial results reported on Feb. 19 show some areas of weakness: AXT posted a quarterly loss of ($0.05) per share, missing consensus expectations of a ($0.04) loss. Revenue of $23.04 million also lagged estimates of around $24.24 million. Both metrics contributed to a negative net margin and return on equity for the quarter.
In addition to the price target increase, recent insider trading activity was highlighted. Director David C. Chang and CEO Morris S. Young both sold significant blocks of stock late last year, reducing their positions. Over the past 90 days, insiders have sold roughly 110,000 shares valued at about $1.37 million, representing an 8.8% insider ownership stake.
Institutional activity suggests growing interest: hedge funds including XTX Topco, Millennium Management and others have added shares to their AXT positions, boosting collective institutional ownership to nearly half of the company’s float. Key industry themes driving sentiment include expanding demand for compound semiconductor materials used in advanced electronics, data communications and wireless infrastructure.
