AXTAXTI +1.58%57 Gross Margin % is 29.63% as of Mar. 2026, which is 8% below its 10-year median of 32.09. GuruFocus rates AXTI with a GF Score™ of 57/100 and a GF Value™ of $2.56 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,009 Semiconductors companies, AXT ranks worse than 65.61% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. AXT's Gross Profit for the
three
months ended in Mar. 2026 was $7.98 Mil. AXT's Revenue for the
three
months ended in Mar. 2026 was $26.92 Mil. Therefore, AXT's Gross Margin % for the quarter that ended in Mar. 2026 was 29.63%.
Warning Sign:
AXT Inc gross margin has been in long-term decline. The average rate of decline per year is -16.7%.
The historical rank and industry rank for AXT's Gross Margin % or its related term are showing as below:
AXTI'
s Gross Margin % Range Over the Past 10 Years
Min: 12.73 Med: 32.09 Max: 36.93
Current: 21.34
During the past 13 years, the highestGross Margin % of AXT was 36.93%. The lowest was 12.73%. And the median was 32.09%.
AXTI's Gross Margin % is ranked worse than 65.61% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs AXTI: 21.34
AXT had a gross margin of 29.63% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for AXT was -16.70% per year.
AXT (NAS:AXTI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
AXT had a gross margin of 29.63% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
AXT Gross Margin % Related Terms
AXT Gross Margin % Historical Data
* Premium members only.
The historical data trend for AXT's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AXTI vs ACMR, CAMT, KLIC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, AXT's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AXT Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, AXT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AXT's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
AXT (AXTI) has a Gross Margin % of 29.63% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AXT and its competitors. This is near median its historical median of 32.09. Over the past decade, AXT's Gross Margin % has ranged from 12.73 to 36.93. According to the industry distribution chart, AXT ranks #662 out of 1009 companies in the Semiconductors industry, placing it in the top 65.6%.
Is AXT's Gross Margin % too high?
AXT's current Gross Margin % of 29.63% is near median its 10-year median of 32.09. Over the past 10 years, this metric has ranged from a low of 12.73 to a high of 36.93. The Semiconductors industry median Gross Margin % is 29.61. AXT's value of 29.63% is 0.1% above this industry median. Based on the distribution chart, AXT ranks #662 out of 1009 companies in the Semiconductors industry, which is below the industry midpoint. Overall, AXT has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AXT's Gross Margin % compare to ACMR and CAMT?
According to the Semiconductors industry distribution chart, AXT ranks #662 out of 1009 companies for Gross Margin %. This places AXT in the lower half of its industry. The industry median Gross Margin % is 29.61. AXT's value of 29.63% is 0.1% above this benchmark. Historically, AXT's own Gross Margin % has ranged from 12.73 to 36.93 over the past decade. While the company's 10-year median is 32.09 vs. the industry median of 29.61, AXT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AXT's current Gross Margin % of 29.63% is 0.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on AXT and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AXT's current Gross Margin % is 29.63%, which is near median its own 10-year median of 32.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AXT stock overvalued right now?
Based on GuruFocus' analysis, AXT (AXTI) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.56, compared to a current price of $70.09 — trading 2637.9% above its estimated fair value. The current Gross Margin % is 29.63%, which is near median its 10-year median of 32.09 and 0.1% above the Semiconductors industry median of 29.61. AXT's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For AXT (AXTI), the current Gross Margin % is 29.63% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AXT (AXTI) Overvalued in 2026?
Based on GuruFocus' analysis, AXT stock appears to be overvalued.
The current stock price of $70.09 is trading 2637.9% above its estimated GF Value™ of $2.56.
GuruFocus considers AXT to be Significantly Overvalued.
Key valuation signals for AXTI:
Gross Margin %: 29.63% (near median its 10-year median of 32.09)
GF Value™: $2.56 vs. price of $70.09 (2637.9% above fair value)
Industry Position: 0.1% above the Semiconductors median (#662 of 1009)
No single metric tells the full story. See the AXTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AXT Inc is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. It is engaged in the design, development, manufacture, and distribution of high-performance compound semiconductor substrates and the sale of materials. The company provides alternative or specialty materials in the form of substrates or wafers, including compound and single-element substrates. Its compound substrates combine indium with phosphorous or gallium with arsenic. Geographically firm has its business presence across the region of Europe, Japan, Taiwan, China, North America, and the Asia Pacific from which China derives its maximum revenue to the company.
57GF Score
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