AXT Inc's stock experienced a 24-hour plunge of 6.21%, reflecting a sharp reversal from earlier gains during the trading session. The semiconductor materials company's shares had rallied significantly intraday before declining in after-hours trading, resulting in the overall negative performance.

The decline appears to be driven by profit-taking activity following a substantial intraday surge. According to market analysis, investors took profits after the stock's strong performance, particularly given its impressive 334.7% year-to-date gain prior to the earnings report. The company's recent $632.5 million capital raise, while supporting capacity expansion, may have also contributed to valuation concerns among investors.

AXT reported mixed first-quarter results that showed revenue beating estimates at $26.9 million versus expectations of $26.2 million, but the company still posted a GAAP net loss of $1.6 million. While adjusted metrics showed improvement, the market reaction suggests investors were expecting stronger performance or were concerned about the company's continued losses despite revenue growth. Multiple executives and directors have been reducing their holdings in recent weeks, adding to selling pressure at elevated price levels.