Karla Barker 
While Bitcoin and Ethereum lost nearly 40% over the past year, AXT Inc. surged more than 5,100%, becoming one of the most impressive AI-linked financial stories this cycle. Let’s break down what AXT does, why it exploded, and how it compares against the crypto giants.
How AXT Inc. Surged Over 5,100%
AXT Inc. is a California-based semiconductor company that manufactures high-performance compound substrates. Its flagship product is Indium Phosphide, alongside Gallium Arsenide and Germanium. These materials are critical for advanced photonic and optical applications across AI infrastructure.
The numbers speak loudly. AXTI traded near $1.74 in June 2025, then jumped close to $89 by early June 2026. That is a rally of more than 5,100% across the period. The stock briefly touched an all-time high of over $140 on May 22, 2026, before correcting roughly 35%. Even after that pullback, annual gains remain spectacular.
The rally was driven by the explosion of AI infrastructure demand. Hyperscalers like Google, Amazon, Microsoft, and Meta accelerated data center construction. This generated a record backlog for AXT and lifted expectations of major future capacity expansions.
AXT’s Indium Phosphide substrates power next-generation lasers and optical transceivers running at 800G and 1.6T speeds. These components enable ultrafast interconnects within modern AI data centers, making them critical to the entire ecosystem. The company controls roughly 40% of the global Indium Phosphide supply. Few short-term substitutes exist, giving AXTI rare pricing power and a near-monopoly in a specific corner of the AI supply chain.
In its Q1 2026 earnings report, AXT posted revenue of $26.9 million, up 39% year-over-year from $19.4 million. The company significantly improved its gross margin to 29.6% (from negative 6.4% in Q1 2025). It narrowed its GAAP net loss to $1.6 million ($0.03 per share), beating analyst expectations. Strong demand for Indium Phosphide substrates for AI data centers drove the results, with a record backlog exceeding $100 million.
How Bitcoin and Ethereum Compare Over the Same Year
Bitcoin and Ethereum experienced the opposite story. Bitcoin traded near $110,000 one year ago and now sits close to $60,700, a decline of roughly 40% across the same twelve-month period. This week the picture worsened sharply. Bitcoin suffered a heavy liquidation event, dropping more than 17% in a single week and breaking below $60,000, approaching yearly lows.
The macro backdrop did not help. Spot Bitcoin ETFs recorded outflows above $1.7 billion this week alone, the largest weekly data in over a year. Meanwhile, a strong United States jobs report reduced expectations for upcoming rate cuts.
Ethereum has followed a similar downward path. The asset traded near $2,685 one year ago and now around $1,560, a correction of roughly 35% across the same broader twelve-month window. This week was equally tough, with the token dropping more than 22% in 7 days, breaking key technical support levels.
The AXTI story illustrates a powerful lesson. In the current AI cycle, certain specialized picks and shovels suppliers can deliver returns that dwarf even the most popular crypto narratives. Yet AXTI remains highly volatile. Elevated valuation, AI sector dependence, and significant production exposure in China are real risks. The trajectory simply highlights the enormous upside hiding inside the quieter corners of the AI supply chain.