AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, …
Full AXTI analysis →
Competitive advantage assessment
Key risks
Commodity Pressure / Weak DifferentiationGross margin at 14.3th percentile with high volatility suggests weak pricing power or commoditized products.
Where AXTI ranks in Semiconductor Equipment & Materials
AXT Inc ranks #26 of 29
scored companies in Semiconductor Equipment & Materials by moat score — the top 90%.
The widest moat in the group is ASML Holding N.V. - New York Re (ASML)
at 83/100.
Moat scores for companies ranked near AXTI in Semiconductor Equipment & Materials
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 21
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 19
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 28
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 22
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 21
· 15% of the moat score
Scale matters only when it converts into economics.
AXT Inc (AXTI) scores 22 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #26 of 29 scored companies in Semiconductor Equipment & Materials, the top 90%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 28 companies in Semiconductor Equipment & Materials. Its strongest defense is Capital Efficiency (28/100) and its weakest is Pricing Power (19/100).
How does AXT Inc compare with other Semiconductor Equipment & Materials companies?
AXT Inc ranks #26 of 29 scored companies in Semiconductor Equipment & Materials by moat score. The widest moat in Semiconductor Equipment & Materials is ASML Holding N.V. - New York Re (ASML) at 83/100. The companies ranked closest are DAQO New Energy Corp. (DQ) at 22 just above it and Amtech Systems, Inc. (ASYS) at 22 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 28 companies in Semiconductor Equipment & Materials. The defenses are then weighted to produce the overall score out of 100.
Why is AXT Inc scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for AXT Inc?
The Corporate Default template measures 6 defenses, and AXTI scores: Pricing Power (19), Cost Advantage (21), Customer Stickiness (19), Capital Efficiency (28), Resilience (22), Scale & Market Position (21). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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