Investment Firm Maytree Bought Over $11 Million in AXTI. Is the Stock a Buy?

What happened

According to a SEC filing dated February 3, 2026, Maytree Asset Management Ltd reported a new holding of 682,299 shares in AXT (NASDAQ:AXTI) during the fourth quarter. The estimated transaction value for the stake was $11.16 million, based on the average price for the period. The quarter-end value of the position also stood at $11.16 million, reflecting both share purchases and price changes.

What else to know

This new position in AXT represented 8.27% of Maytree Asset Management Ltd’s 13F reportable assets following the filing.

Top holdings after the filing:

• NASDAQ:PDD: $58.18 million (43.1% of AUM)
• NASDAQ:INTC: $12.13 million (9.0% of AUM)
• NASDAQ:NVDA: $11.68 million (8.7% of AUM)
• NASDAQ:AXTI: $11.16 million (8.3% of AUM)
• NASDAQ:SNPS: $9.82 million (7.3% of AUM)

As of February 2, 2026, shares of AXT were priced at $20.94, up 911.6% over the past year, outperforming the S&P 500 by 886.42 percentage points.

Company overview

Company snapshot

• AXT, Inc. produces compound and single element semiconductor substrates, including indium phosphide, gallium arsenide, and germanium, primarily used in data center connectivity, 5G communications, fiber optics, LEDs, and solar cells.
• It generates revenue by designing, manufacturing, and distributing high-purity semiconductor substrates and related materials using proprietary vertical gradient freeze technology.
• The company serves technology manufacturers and OEMs in the United States, China, Europe, Japan, Taiwan, and Korea, targeting sectors such as telecommunications, data centers, consumer electronics, and industrial applications.

AXT, Inc. is a technology company specializing in the development and production of advanced semiconductor substrates for high-growth applications in communications, photonics, and energy. With a global customer base and a focus on proprietary manufacturing processes, the company leverages its expertise to supply critical materials for next-generation electronic devices. Its diversified product portfolio and international reach position it as a key supplier within the semiconductor materials industry.

What this transaction means for investors

Hong Kong-based investment advisory firm Maytree Asset Management’s purchase of AXT stock is noteworthy because the buy represents a new position, and it was substantial enough to catapult AXT into the firm’s top five holdings.

The transaction suggests a bullish outlook towards AXT, which has enjoyed a phenomenal run over the past year. Shares were at a 52-week low of $1.13 last April, but rose to an astounding high of $26.66 on Jan. 15 of 2026. The jaw-dropping increase was due to the hot artificial intelligence market.

AXT’s semiconductor components have seen growing demand for use in hardware to operate AI systems. As a result, the company’s third quarter revenue rose to $28 million, up from the prior year’s $23.6 million.

However, AXT is not profitable, posting an operating loss of $1.1 million in Q3. On the bright side, that was an improvement over the previous year’s loss of $3.4 million.

Maytree’s buy may be motivated by the anticipated growth in the AI market, which provides a tailwind to AXT’s business. Still, AXT’s share price increase also means its valuation has soared.

Its price-to-sales ratio of about nine is near a multi-year high, indicating the stock is expensive. The best approach is to hold off and wait for the share price to drop before deciding to buy.

Robert Izquierdo has positions in Intel and Nvidia. The Motley Fool has positions in and recommends Intel, Nvidia, and Synopsys. The Motley Fool has a disclosure policy.