AXT Q2 earnings report smashed expectations, stock up another 10% after hours Q2 Earnings Highlights: 1. Revenue: $47.6M, beating the expected $34.1M 2. Adjusted EPS: $0.19, higher than the expected $0.07 3. GAAP EPS: $0.17 4. Gross margin: 44.9%, compared to just 8.0% YoY 5. GAAP net income: $11.1M, versus a net loss of $7M YoY 6. Indium Phosphide (InP) revenue hit a record high for a single quarter in company history Key Takeaways: 1. Revenue grew 77% QoQ and 165% YoY, driven by strong demand for AI data center optical interconnects. The company successfully turned profitable, with significant improvement in profitability. 2. Management stated that the company has reached a business inflection point. Demand for AI optical communications and data centers continues to accelerate. They are actively expanding capacity, improving production efficiency, and working with key customers to plan for future needs, preparing for long-term growth in the AI infrastructure market. What to Watch Next: Q3 revenue guidance, whether the ~45% gross margin can be maintained, progress on export licenses, pace of capacity expansion, and more details on the collaboration with LITE. #AI #DataCenters #Earnings #AXT $AXTI