AXT Inc. (NASDAQ:AXT) is one of the 10 Stocks Heating Up Amid Market Panic.

AXT Inc. bounced back by 9.92 percent on Wednesday to finish at $48.76 apiece, as investors resorted to bargain-hunting following the previous dayโ€™s drop, while funds fled sectors seen as vulnerable to the ongoing tensions in the Middle East.

In the first few trading days of March alone, AXT Inc. (NASDAQ:AXT) has already seen its stock price soar by 39 percent, even hitting an all-time high of $52.70 on Monday.

The rally can be partly attributed to strong investor confidence for the technology industry, particularly those that will largely benefit from the rapidly growing AI.

AXT Inc. (NASDAQ:AXT) is a semiconductor company engaged in the design, development, and production of high-performance compound and single-element semiconductor substrates (wafers), including gallium arsenide (GaAs), indium phosphide (InP), and germanium (Ge), which are critical to the production of LEDs, lasers, 5G infrastructure, data center communication, and solar cells, among others.

Photo from AAOI

Earlier, AXT Inc. (NASDAQ:AXT) posted an optimistic outlook about the first quarter of the year, saying that it expects to achieve sequential revenue growth amid demand growth in indium phosphide for the AI infrastructure build-out, supported by its progress in export permits, which were lacking in the fourth quarter of 2025.

While we acknowledge the potential of AXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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