AI Semiconductor Stock Surges 5,100% While Bitcoin and Ethereum Shed 40%

While Bitcoin and Ethereum lost nearly 40% over the past 12 months, AXT Inc. surged more than 5,100%, becoming one of the most impressive AI-linked stories in financial markets this cycle. For crypto holders nursing drawdowns, watching a relatively obscure semiconductor vendor quietly outrun their portfolios by a factor of fifty-plus is the kind of diversification lecture nobody asked for. We break down what AXT does, why it exploded, and how it compares against Bitcoin and Ethereum across a brutal year for crypto markets.

AXT Inc. (AXTI) Price Performance – 1 Year. Source: TradingView

How AXT Inc. Surged Over 5,100% in Just 12 Months AXT Inc. is a California-based semiconductor company that manufactures high-performance compound substrates. Its flagship product is Indium Phosphide, alongside Gallium Arsenide and Germanium, all critical materials for advanced photonic and optical applications across AI. In other words, the unglamorous pick-and-shovel hardware powering the data center boom.

The numbers speak loudly. AXTI traded near $1.74 in June 2025, then jumped close to $89 by early June 2026, a rally of more than 5,100% across the period.

$AXTI with a close below 10-week MA for the first time since last summer… AXTI has been a serious leader this cycle. Easily one of the strongest stocks. Think it would be a red flag if it broke down pic.twitter.com/osZFOpZFoJ — Justin Spittler (@JSpitTrades) June 5, 2026

The stock briefly touched an all-time high of over $140 on May 22, 2026, before correcting roughly 35%. Even after that pullback, AXTI's annual gains remain spectacular and rank among the best of the entire stock market.

The rally was driven by the explosion of AI infrastructure demand. Hyperscalers like Google, Amazon, Microsoft, and Meta accelerated data center construction, generating a record backlog for AXT and lifting expectations of major future capacity expansions.

$AXTI – I think this thing ways WAYYY lower. People might look at the weekly chart and think "two low volume pullback weeks, that's positive." To me that means SO MANY people are trapped at higher prices. So if this stays heavy there's selling pressure for WEEKS. pic.twitter.com/JB9nxCQi3G — Nick Drendel (@NickDrendel) June 5, 2026

AXT's Indium Phosphide substrates power next-generation lasers and optical transceivers running at 800G and 1.6T speeds. These components enable ultrafast interconnects within modern AI data centers, making them critical to the entire ecosystem. The company controls roughly 40% of the global Indium Phosphide supply. Few short-term substitutes exist, giving AXT rare pricing power and a near-monopoly in a specific corner of the AI infrastructure supply chain.

Indium Phosphide Wafer Market Size and Share. Source: Mordor Intelligence

In its Q1 2026 earnings report released on April 30, AXT Inc. (AXTI) posted revenue of $26.9 million, up 39% YoY from $19.4 million. The company significantly improved its gross margin to 29.6% (from negative 6.4% in Q1 2025), while narrowing its GAAP net loss to $1.6 million ($0.03 per share), beating analyst expectations. Strong demand for Indium Phosphide substrates for AI data centers drove the results, with a record backlog exceeding $100 million.

How Bitcoin and Ethereum Compare Over the Same Year Bitcoin and Ethereum experienced the opposite story. The king of the crypto market traded near $110,000 one year ago and now sits close to $60,700, a decline of roughly 40% across the same twelve-month period. This week the picture worsened sharply. Bitcoin suffered a heavy liquidation event, dropping more than 17% in a single week and breaking below $60,000, approaching yearly lows that few major holders expected. A reminder that "digital gold" remains remarkably adept at acting like a high-beta tech stock when liquidity tightens.

Bitcoin (BTC) Price Performance – 1 Year. Source: TradingView

The macro backdrop did not help. Spot Bitcoin ETFs recorded outflows above $1.7 billion this week alone, the largest weekly data in over a year, according to SosoValue data. Meanwhile a strong United States jobs report reduced expectations for upcoming rate cuts, the kind of headline that historically sends risk assets, crypto included, into a defensive crouch.

Ethereum has followed a similar downward path. The asset traded near $2,685 one year ago and now around $1,560, a correction of roughly 35% across the same broader twelve-month window. This week was equally tough for $ETH. The token dropped more than 22% in 7