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    Is AXT’s New Independent Audit Chair a Turning Point for AXTI’s Governance and AI Ambitions?

    Simply Wall St·02/03/2026 12:22:39
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    • In January 2026, AXT, Inc. announced that its board had determined Leonard J. LeBlanc to be independent under Nasdaq rules and appointed him Chair of the Audit Committee, with former chair Jesse Chen remaining as a committee member.
    • This governance shift comes as AXT’s role as a key Indium Phosphide wafer supplier to AI-driven data centers has drawn heightened investor attention.
    • Against this backdrop, we’ll examine how Mr. LeBlanc’s move to independent Audit Committee Chair influences AXT’s investment narrative and governance profile.

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    What Is AXT's Investment Narrative?

    To own AXT here, you need to believe its position as an Indium Phosphide wafer supplier into AI-driven data centers can eventually support a move from persistent losses to sustainable profitability, despite an already stretched valuation and very large recent share price gains. In the near term, the big swing factors are February’s Q4 2025 results, any updates on AI optics demand, and how the company plans to deploy the roughly US$87,000,000 raised in the December follow-on offering, especially after a year of dilution and insider selling. The board’s decision to classify Leonard LeBlanc as independent and make him Audit Committee Chair should help on governance optics, but it is unlikely to change those operational and valuation catalysts in a material way on its own.

    However, one governance upgrade does not remove the concentration, geopolitical and execution risks investors should be aware of. Our valuation report here indicates AXT may be overvalued.

    Exploring Other Perspectives

    AXTI 1-Year Stock Price Chart
    AXTI 1-Year Stock Price Chart
    Community members on Simply Wall St place AXT’s fair value between US$5.70 and US$9.50, based on three independent views. That sits against a market that already prices in aggressive AI-driven growth while Q4 losses and execution risk around the new capital raise still hang over the story, so it is worth weighing these contrasting perspectives before deciding how AXT fits into your own expectations.

    Explore 3 other fair value estimates on AXT - why the stock might be worth as much as $9.50!

    Build Your Own AXT Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your AXT research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
    • Our free AXT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AXT's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.